{"id":329648,"date":"2024-09-26T00:25:04","date_gmt":"2024-09-25T16:25:04","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329648"},"modified":"2024-09-26T00:25:05","modified_gmt":"2024-09-25T16:25:05","slug":"stock-in-focus-premiere-island-power-reit-corp-preit-26-sept-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-premiere-island-power-reit-corp-preit-26-sept-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Premiere Island Power REIT Corp. (PREIT) – 26 Sept 2024 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>PREIT<\/td><\/tr>
Company Name<\/strong><\/td>Premiere Island Power REIT Corp.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>26 Sept 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2.91<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are rolling forward our BUY recommendation with our Target Price of P2.91 apiece. Given this, upside potential of ~47% based on the prevailing market price.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Premiere Island Power REIT Corporation (PREIT) saw a modest dip in net income, declining by -4.04% year-on-year (y\/y) to P128 million in the 2nd quarter (2Q) 2024, which was primarily driven by flat revenue performance and rising costs. The company\u2019s 2Q 2024 rental income remained stagnant vs its 2Q 2023 figures, leading to a contraction in gross profit of -2.55% y\/y, landing at P131.3 million. The lack of growth in revenue highlights the absence of new asset infusions since its IPO, which could be a sticking point for PREIT moving forward.<\/p>\n\n\n\n

However, there is a silver lining: PREIT’s tenants are also its power generation backers, ensuring a 100% occupancy rate. This means the company can sidestep the usual commercial leasing challenges that plague many other REITs, allowing it to operate with confidence and stability. <\/p>\n\n\n\n

PREIT is the power and infra-REIT arm of the PAVI Group, and its playbook leans
heavily on energy infrastructure. Currently, it boasts a total gross leasable area of 30,66sqm, with its SIPCOR property in Candanay Sur, Siquijor, standing as the largest asset at 9,478 sqm.<\/p>\n\n\n\n

Within its leasing property portfolio, the CAMPCOR Land asset category takes the lion’s share, contributing 16,407sqm of GLA, closely followed by the SIPCOR land with 12,47sqm. Since its IPO, PREIT has not pursued any expansions to its asset base through new acquisitions or infusions like its REIT peers VREIT and FILRT. Nonetheless, it is a good thing that PREIT\u2019s tenants are its powergen backers, which means 100% guaranteed occupancy\u2014no sweat about the usual commercial leasing challenge most REITs face.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>