Richest Filipino Manuel B. Villar Jr.’s Vista Land & Lifescapes Inc. renewed its growth trajectory as its net income shot up by 70 percent to P8.22 billion for the first nine months of 2023 from P4.82 billion in the same period last year.
One of the country’s leading integrated property developers and the largest homebuilder, Vista Land said that as of the end of the third quarter of 2023, it has launched 27 projects with an estimated project value of about P40 billion.
“We are delighted with our results, as we remain optimistic with the industry for the rest of the year with the strong GDP growth of 5.9 percent coupled with sustained growth in OF remittance and revenge spending from consumers, all of which contributed to the positive performance of the group,” said Vista Land Chairman Manuel B. Villar Jr.
He added that, “we have been launching more projects this year which was a factor in the 10 percent growth in our reservation sales to P53.1 billion for the period.”
“With the holiday season approaching, we eagerly anticipate welcoming an increased number of customers to our commercial centers as well as our Overseas Filipinos coming home during the holidays which bodes well for our residential sales,” he added.
Villar noted that, “as we move forward, our aim is to maximize our existing resources specifically our land as we remain committed to our mission of building communities across the Philippines that stand the test of time."
Vista Land's consolidated revenue for the first nine months of 2023 registered at P27.4 billion, marking an 18 percent increase.
Real estate revenue returned to double-digit growth with a 17 percent increase to P12.2 billion, while rental income amounted to P11.8 billion for the nine months ended Sept. 30, 2023.
Gross profit reached P7.2 billion, and EBITDA rose by 21 percent to P15.2 billion. Vista Land also improved its residential gross profit margin by over 400 basis points to 59 percent.
The core net income (excluding the gain from insurance proceeds) registered an increase of 30 percent to P6.8 billion for the period.
“We are consistently enhancing our residential business by offering more vertical and upscale projects, while our leasing sector is maintaining its growth trajectory for the period,” said Vista Land President and CEO Manuel Paolo A. Villar.
He noted that, “the demand for our residential developments, spanning both horizontal and vertical segments, remains robust and sustained, with the strong interest from Overseas Filipino buyers, constituting approximately 60 percent of our total sales.”
“Our leasing portfolio, of over 1.6 million square meters of gross floor area across 45 malls, 56 commercial centers, and 7 office buildings, has experienced increased foot traffic exceeding pre pandemic levels," he added.
Villar also said that, "our strategic approach to maximizing prime land is actively underway, with the continuous launch of Vista Estates nationwide. Currently, our land bank spans over 3,085 hectares and is strategically located across the country."
The financial condition of the company for the period ended Sept. 30, 2023, remained healthy, allowing financial flexibility for Vista Land. Total assets at the end of September stood at P337.8 billion, with equity at P130.9 billion. The net-debt-to-equity ratio at the end of the period was 82 percent.
Vista Land spent P21.3 billion for capital expenditures for the period, directed mainly towards construction and land development.
The company said it is concentrating on maximizing its current land bank, demonstrating a prudent and strategic approach to growth.