Vista Land & Lifescapes Inc., one of the country’s leading integrated property developers and the largest homebuilder, reported an 83 percent surge in net income to P5.8 billion for the first semester of 2023 from the P3.18 billion earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the company said it launched a total of P24.3 billion worth of projects across the country.
“We are pleased with our performance for the 1st semester of 2023 as we have sustained our growth trajectory for the year,” Vista Land Chairman Manuel B. Villar Jr. said.
He added that, “we have been launching more projects this year compared to last year. These launches will form part of our huge project pipeline, he added. It’s also a big factor in our reservation sales performance which generated a total of P35.6 billion for the 1st semester which is 12% higher from same period last year.”
“Our overall strategy for the group remains to be maximizing our land to its best use,” Villar noted.
Vista Land reported a consolidated revenue of P18.3 billion for the period which is up eight percent. Real estate revenue registered at P8 billion while rental income amounted to P7.9 billion for the first half of 2023.
Gross profit was at P4.7 billion while EBITDA amounted to P10.0 billion. Vista Land improved its gross margin by over 300 basis points to 59 percent.
The company also recognized a gain from the proceeds of insurance amounting to P1.8 billion. Core net income (excluding the gain from insurance proceeds) is at P4.2 billion for the period.
“We continue to deliver improvements in our residential business while our leasing business sustained its growth momentum for the period,” said Vista Land President and CEO Manuel Paolo A. Villar.
He added that, “we have seen strong and sustained demand in our residential developments both horizontal and vertical segments especially from our Overseas Filipino buyers which comprise about 60 percent of our total sales.”
“In terms of our leasing portfolio, of over 1.6 million square meters of gross floor area of commercial assets consisting of 45 malls, 56 commercial centers and 7 office buildings, we are reaping the benefits from the increased foot traffic and return to normalcy,” the CEO said.
He noted that, “our strategy of maximizing our prime land is ongoing implementation, as we have been launching more Vista Estates across the country. These developments are mostly vertical and commercial projects which are geared towards the higher end of the income spectrum demand. Currently our land bank has a total of 3,085 hectares and is spread across the country."
Total assets stood at P335.4 billion as of end June 2023 while equity was at P129.3 billion. Net debt to equity at the end of the first semester is at 84 percent.
Capital expenditure amounted to P12.2 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.