SIPCOR is the island province’s sole power provider and is rightfully being blamed for the blackouts in the area. Residents, who sometimes only have 2 hours of electricity a day, are calling for SIPCOR to be replaced. The problem is so bad that the provincial government had to declare a state of calamity. National government agencies also had to step in and bring in generators and no less than President Marcos Jr. has given the company 6 months to fix the problem.

SIPCOR is one of the two sponsor-tenants of Premier Island Power REIT (PREIT) and their failure to serve the people of Siquijor is a reflection of poor management. Prime Asset Ventures Inc. (PAVI), the parent company of PREIT and SIPCOR, is also being called out for failing to serve residents in various provinces in terms of water supply – this time through another subsidiary, PrimeWater.

As an investor, I will seriously question holding PREIT. Regardless of dividend yield, a poorly managed business is a terrible investment. It is also important to note that PREIT’s assets include not just the land and buildings but the diesel generators as well – yes, the ones that failed! Did PAVI infuse old and clunky machinery into the REIT? Que horror! Not that we lack options – renewable energy landlord CREIT is a much better choice.