Vista Land sets ₱10-B bond offer to finance capex

Published November 18, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Vista Land and Lifescapes, one of the country’s leading integrated developers, is planning to raise up to ₱10 billion from the issuance of bonds to fund the construction of malls and condominium projects.

Vista Land NEW Logo with Tagline FINAL

The firm is planning to issue an initial ₱5 billion worth of bonds with an oversubscription option of another ₱5 billion from its ₱30 billion three-year shelf registration with the Securities and Exchange Commission.

Net proceeds will be used to partially fund the construction and completion of various malls, redevelopment of existing malls, construction of condominium projects, and for general corporate purposes.

Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to Vista Land’s (VLL) proposed bond issue.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

PhilRatings said Vista Land’s top rating is due to its well-diversified portfolio, continuously growing profitability with strong margins and its ability to generate cash flows from operations, and the favorable industry outlook, backed by resilient and growing demand.

Vista Land has built over 400,000 homes, 31 malls, 52 commercial centers and seven office buildings. As of September 30, 2019, the company’s projects were distributed in 147 cities and municipalities in 49 provinces throughout the Philippines.

“The company’s total consolidated revenues have been growing healthily during the five-year period reviewed from 2014 to 2018, with a compound annual growth rate (CAGR) of 11.9 percent,” PhilRatings said.

“The company’s total consolidated revenues have been growing healthily during the five-year period reviewed from 2014 to 2018, with a compound annual growth rate (CAGR) of 11.9 percent,” PhilRatings said.

The share of rental income to total revenues consistently increased with a CAGR of 42.5 percent, decreasing the share of real estate revenues. Despite the decline in terms of percentage share, real estate revenues steadily grew, with a CAGR of 9.2 percent.

VLL’s gross profit margin averaged at 59.8 percent, mainly attributable to the relative stability of its expenses. Earnings before interest, taxes, depreciation and amortization (EBITDA) and net income margins had a mean of 38.7 percent and 25.6 percent, respectively.

Margins have also been on a generally increasing trend from 2014 to 2018.

 
CLICK HERE TO SIGN-UP
 

YOU MAY ALSO LIKE

["business","business"]
[951058,3000422,3000416,3000407,3000398,3000385,3000354]