PREIT Posts P252.1 Million Net Profit in H1 2025

In the first half of 2025, Premiere Island Power REIT Corp. reported a net profit of P252.1 million, slightly lower than the P255.3 million recorded during the same period the previous year.

​Results of Operations (Financial Performance)

Review of results of operations for the six (6) months ended 30 June 2025 as compared with the results for the six (6) months ended 30 June 2024.

Revenue remained the same

Revenue for the period amounted to P304.4 million and pertains solely to income from the lease of properties to the lessees who operate power plants on such leased properties. The amount of revenue recognized was in accordance with the relevant Philippine Financial Reporting Standards (PFRS). Under PFRS 16, the rental income includes the effect of straight-line basis of accounting over the lease term. Effect of straight-line basis of accounting amounted to P14.3 million for 30 June 2025. No additional lease agreements were entered into during the period.

Cost of Rentals increased from P41.8 million to P45.4 million

Cost of rentals amounted to P45.4 million, or equivalent to 14.9% of rental income, and consisted of depreciation of generation assets, fund and property management fees, and various fees and taxes. The increase of P3.6 million is mainly attributed to the increase in depreciation and management fees.

Operating expenses increased from P1.5 million to P3.2 million.

Operating expenses amounted to P3.2 million for the period, which is P1.7 million higher than the same period last year. The increase is mainly due to higher professional and administrative fees for the period.

Other Income (Charges) – Net decrease from P0.204 million to P0.191 million

Other Income (Charges) declined principally due to the amortization of interest expense over the lease terms.

Other Comprehensive Income increased from P2.09 million to P2.1 million

Other comprehensive income increased due to the increase in the after-tax piecemeal realization of the revaluation surplus recognized from the appraisal of generator set for the year ended 31 December 2024.

Total Comprehensive Income

The result of operating and non-operating activities resulted in a total comprehensive income of P250 million.

Financial Position as of 30 June 2025 as compared with financial position as of 31 December 2024

Assets

Cash decreased from P0.9 million to P0.3 million

The net decrease in cash balance is due to the settlement of payables and advances.

Trade and other receivables decreased from P889.5 million to P569.1 million

The decrease in trade and other receivables is due to higher collections of rentals compared to billings during the quarter.

Prepayments and other current assets increased from P55.0 million to P63.8 million

The increase mainly pertains to the recognition of creditable withholding tax from collections made. These will be utilized against any future income tax payable.

Net property and equipment decreased from P961.5 million to P929.6 million

Movement to property and equipment pertains to depreciation for the period.

Investment properties remained the same

The Company’s investment properties comprise of land (including land subject to right-of-use assets) and buildings leased to power plant operators. There were no movements during the quarter, as there were no acquisitions nor disposals, and property appraisals are conducted at year end.

Liabilities

Trade and other payables increased from P138.6 million to P151.2 million

The increase in trade and other payables is due to the increase in deferred output VAT and VAT payable to the government.

Due to related parties decreased from P322.7 million to nil

Due to related parties is composed of cash advances from its parent company and a related party under common ownership for accommodation of certain expenses, working capital requirements, and other purposes. The decrease is primarily due to the settlement of advances from affiliates.

Lease liability (including the non-current portion) decreased from P5.8 million to P5.6 million

Movements to the account were due to repayments and amortization during the quarter.

Equity

Equity decreased from P 9,241.3 million to P 9,204 million

Equity decreased as the company declared dividends of P289.4 million and recognized a total net income of P252.1 million for the quarter.