Villar-led Vista Land & Lifescapes, Inc., one of the Philippines’ leading integrated property developers, reported an 11 percent growth in net income to P6.4 billion for the first half of 2024 from P5.8 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said this came on the back of its successful launch of P22.2 billion worth of projects nationwide during the period.
“We are pleased with our performance in the first semester of 2024, as we have maintained our growth trajectory,” said Vista Land Chairman Manuel B. Villar Jr.
He noted “We are committed to continuing our strategy of asset maximization and optimization through Vista Estates, which now encompasses 26 locations nationwide.
“We also aim to solidify our foothold in the horizontal residential market with several launches in areas specifically in the provinces given our wide geographic presence in the country.”
“This year’s increased project launches contribute significantly to our extensive project pipeline and have positively impacted our reservation sales, which totaled P39.2 billion for the first semester— a 10 percent increase compared to the same period last year,” Villar added.
Vista Land reported an eight percent improvement in consolidated revenue to P19.9 billion for the period with real estate revenue reaching P9.6 billion while rental income amounted to P8.5 billion.
Gross profit stood at P6.6 billion, with earnings before interest, taxes, depreciation, and amortization totaling P11.4 billion. Vista Land enhanced its gross margin bringing it to 57 percent.
"Our first-half 2024 results align with our asset optimization strategy, with growth in both residential and commercial segments," said Vista Land President and CEO Manuel Paolo A. Villar.
He added that, "We now have over 1.6 million sqm of gross floor area across more than 100 commercial properties, including 42 malls, 59 commercial centers, and seven office buildings. Foot traffic is increasing as more people return to our malls and commercial spaces.”
“With a land bank of 2,969.0 hectares, we plan to launch more upscale and vertical residential projects, integrated with commercial developments in our master-planned communities, to maximize our prime land. The Company spent P13.6 billion on capital projects in the first half of 2024," the chief executive disclosed.
The Company's financial condition for the period ended June 30, 2024, remains strong, providing significant financial flexibility. This enables the Company to effectively navigate market fluctuations and capitalize on emerging opportunities in the real estate sector.
By the end of the period, the Company reported total assets of P352.7 billion and equity of P136.1 billion, resulting in a net debt-to-equity ratio of 85 percent.
On July 30, 2024, Vista Land successfully raised a $350 million note due 2029.
The proceeds will be used to refinance the Company’s dollar bond, maturing in November 2024, which effectively eliminates refinancing risk for the year. Vista Land intends to call the maturing bonds as early as October 2024 as disclosed.
The success of the bond offering underscores strong investor confidence and highlights the Company’s solid performance and strategic vision for delivering long-term value.
Vista Land has ZERO exposure to POGO in both its residential and office properties. As a result, the recent ban on POGO operations in the Philippines, which took effect on July 22, has had no impact on the Company.