Vista Land & Lifescapes, Inc., one of the country’s leading integrated property developers and the largest homebuilder, posted a 9 percent improvement in net income to P3.8 billion for the first semester of 2021 from the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said its gross margin improved by 450 basis points and EBITDA margin also improved by 390 basis points due to the various operational efficiency measures undertaken during the period.
“We remain optimistic with the industry especially with the performance of OF (overseas Filipino) remittances, which registered two consecutive months of double-digit growth and are currently at 6.6 percent growth for the first 5 months of the year,” said Vista Land Chairman Manuel B. Villar Jr.
He noted that, “Demand from OFs remained strong, which contributed to the 14 percent growth in our reservation sales of P29.4 billion for the period. The pandemic also provided a venue for the company to review its strategies and implement various operational efficiency measures which resulted in improvement in our margins.”
Vista Land reported real estate revenues of P11.1 billion, down 13 percent due to the slower construction activities in the provincial areas where various level of lockdown were implemented during the period.
Leasing income increased 6 percent to P3.6 billion. The Company’s newly opened commercial centers, where the majority of the tenants are essential (i.e. home store and supermarket), contributed to the topline growth.
“The various digital initiatives we have implemented since last year are already yielding positive results, but we have just started, and we are working on more initiatives all aimed at better serving our clients as well as expand our reach,” said Vista Land President and CEO Manuel Paolo A. Villar.
The company spearheaded the biggest virtual property expo in the country – the ViCon. The 2-day event showcased all the real estate brands of the Villar Group complete with virtual booths and speakers from the industry intended for potential buyers around the world.
Some of the other digital initiatives of the company include an online reservation system for all its product offerings, expanded online payment options, virtual property tours and the extensive use of social media platforms.
Capital expenditure for the first semester of the year reached P11.3 billion mainly for construction and land development.
Land acquisitions remained muted as the company disclosed that they are looking at maximizing its existing land bank. The company had 2,953 hectares of land as of end June 2021.
A total of P5.2 billion worth of projects were launched during the period, comprising one high-end project, three affordable projects and two mid-rise buildings.