Vista Land & Lifescapes, Inc., one of the country’s leading integrated property developers and the largest homebuilder, is allotting P27 billion for capital expenditures as it grows optimistic due to higher reservation sales.
In a disclosure to the Philippine Stock Exchange, the firm said this year’s capex is mainly for construction and land development.
Land acquisition budget remained muted as the company disclosed that it is looking at maximizing its existing land bank. It has 2,968 hectares of land as of end March 2021.
Vista Land reported that its net income declined 14 percent to P2.1 billion in the first quarter of 2021 from same period last year.
The firm noted though that it saw continued quarterly improvement as reservation sales for the period hit P16.0 billion, up 4 percent from the first quarter of 2020 and 14 percent higher compared to the fourth quarter sales figure.
“We remain optimistic with the industry especially with current growth in OF (overseas Filipino) remittances for two consecutive months that is poised to hit the full year target growth of 4 percent, according to the BSP (Bangko Sentral ng Pilipinas),” Vista Land Chairman Manuel B. Villar Jr. said.
He noted that, “Over 50 percent of our sales come from Overseas Filipinos and the demand from the sector remains resilient amid the current challenging time.” “We are also looking forward to the vaccination roll out of the country in relation to the further opening of the economy which will benefit not just our industry but the country as a whole,” Villar added.
The company reported real estate revenue at P6.3 billion, down 13 percent for the period while the leasing income was at P2.0 billion or 9 percent down.
Vista Land’s leasing business has the advantage of having majority essential tenants, which is the main reason for the better performance of its retail properties.
In term of its residential business, the company took advantage of various digital initiatives to further expand its sales and customer service.
Vista Land implemented an online reservation system for all its product offerings, expanded its online payment options, shifted to virtual property tours and maximized the use of social media platforms.
“Our digital initiatives have become a permanent part of the company’s infrastructure. Our aim is to continue with our digital innovations to expand our reach as well as to better serve our clients and customers,” said Vista Land President and CEO Manuel Paolo Villar.
Vista land recently completed a US$170 million dollar note offering which was part of its liability management exercise. It fully refinanced its dollar debt maturing in June 2022 with the recent dollar offering.