Premiere Island Power REIT Corporation (PREIT), a Villar-linked real estate investment trust, has warned of a revenue impact following the continued shutdown of power plants in Siquijor Island pending a Court of Appeals review of an Energy Regulatory Commission (ERC) revocation order.

In a disclosure to the Philippine Stock Exchange on February 6, PREIT said S.I. Power Corporation (SIPCOR) filed a Petition for Review on September 15, 2025, seeking to overturn the ERC’s August 28, 2025 decision revoking all Provisional Authorities to Operate (PAOs) for its generating units. The case includes a request for injunctive relief against enforcement of the ERC ruling.

The ERC filed its formal comment on the petition on January 26, 2026, and SIPCOR is expected to submit its reply within the period prescribed by court rules.

SIPCOR operates the Siquijor Island generating facilities under lease agreements with PREIT, which holds the underlying power generation assets. The PAO revocation forced the plants offline, directly affecting PREIT’s rental income. 

“SIPCOR has informed us that it is currently exhausting all available remedies to resume operations,” PREIT said, noting that the petition “remains pending.”

PREIT said the continued suspension has financial consequences, with SIPCOR unable to pay rentals due under the lease agreements. The company said it is exploring opportunities to lease or dispose of the Siquijor generation assets to other operators on commercially viable terms.

PREIT is backed by the Villar business group and lists power plant and land assets used in electricity generation in island grids, including Siquijor and Camotes Island.  

PREIT shares fell sharply in August 2025 after the ERC revoked SIPCOR’s permit to operate, with trading dropping nearly 8% in one session as investors reacted to the regulatory action and advice from market analysts to sell amid concerns over dividends and revenue streams tied to SIPCOR.  

How should energy asset-owning REITs manage regulatory risks when their lessees face compliance issues like SIPCOR’s ERC revocation?

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