By James A. Loyola
Vista Land & Lifescapes, Inc., one of the country’s leading integrated property developers, registered a 13 percent growth in net income for the first quarter of 2018 to P2.6 billion from P2.3 billion in the same period last year.
In a press briefing, Vista Land President Manuel Paolo Villar said this was driven by the sustained growth momentum of its core residential business and the contribution from its leasing business.
Consolidated revenues for the quarter ended at P10.1 billion, 12 percent higher than the P9.0 billion in the comparable period a year ago. Leasing revenue for the quarter increased by 14 percent to P1.6 billion from P1.4 billion in the prior year period.
“2018 promises to be another record year for Vista Land. We are pleased to have been able to achieve solid growth over the past years and it should be the same this year as we take advantage of the various synergies that we have unlocked among our businesses,” said Vista Land Chairman Manuel B. Villar.
He noted that, “our positive outlook for the year is due to the continued growth of our housing business in addition to the expansion of our commercial assets on the back of sound Philippine macroeconomic fundamentals.”
Villar added that, “we also are seeing stable demand in our housing business as we registered 12 percent growth in reservation sales for the quarter, the same rate as the full year growth registered in 2017.”
The younger Villar also pointed out that, “we have seen a continued growth in our leasing business as we continue to roll out our expansion programs to achieve our new upgraded target of 1.4 million square meters in Gross Floor Area (GFA) by the end of this year.”
As a result, Vista Land’s leasing business now accounts for 28 percent of EBITDA and 23 percent of net income and is expected to increase towards the end of the year.
“I remain confident about the prospects for our company. In addition to the expansion of our rental spaces, which provides stability to our existing core and stable end-user housing business, we will continue to launch and open projects in new areas across the Philippines as we get on with our next 100 new cities and municipalities in addition to what we had at the end of 2017,” Manuel Paolo Villar explained.
He added that, “demand for our housing products has been stable as our sales from Overseas Filipinos remained solid at about 60 percent of our total sales and we are also seeing domestic demand increase.”
Villar said they are planning to raise about P10 billion from the debt market in the later part of the year to help fund its R50-billion capex. This may be in the form of peso or dollar bonds or direct bank loans.
Towards the third quarter, the firm is also expected to announce major joint ventures for mixed use developments of around 100 hectares each. This will be part of plans to develop 23 “communicities” across the country.