Vista Land posts 11% increase in 9-month earnings

VISTA LAND & Lifescapes, Inc. netted 11% more earnings in the nine months to September, as its leasing business continued to expand and deliver more revenues.

In a statement issued on Monday, the listed property developer announced its net income increased to P6.4 billion from the P5.8 billion reported for the comparable period in 2015.

Consolidated revenues rose 8% to P24 billion from P22.3 billion, mainly reflecting the 67% surge in rental income to P3.1 billion from P1.9 billion, following the increase in the company’s leasable space.

“We remain bullish with the expansion plans of our newly acquired subsidiary Starmalls, Inc., which currently has 17 commercial assets in its portfolio, and that is on top of what we had prior to the acquisition,” Vista Land Chairman Manuel B. Villar, Jr. said in the statement.

“Our strategies in both the commercial and residential sides of our business are anchored on sound Philippine macroeconomic fundamentals, a resilient real estate industry, the favorable market environment and the sustained growth in disposable income and [ overseas Filipino] remittances.”

Vista Land launched P17 billion worth of projects, mostly in the low and affordable segment outside the Mega Manila area, between January and September. To date, the company is present in 97 cities and municipalities across the Philippines and looks to enter at least three more areas.

In early October, Vista Land unveiled its first condominium project in Boracay called Costa Vista Boracay.

”Our company is poised to have another banner year for 2016 as our additional leasable spaces are now contributing significantly to our current financial results and will continue for the rest of the year and moving forward,” Vista Land President and Chief Executive Officer Manuel Paolo A. Villar said in the statement.

“We also remain prudent with our financial management as we undertook a liability management exercise during the period to replace some of our existing dollar liability with a seven-year peso-denominated bilateral loan at a 5% interest rate.”

By end- September, Vista Land has spent P22.7 billion of its capital expenditure budget of P30.9 billion, largely on the construction of commercial assets and housing units.

The company has announced plans to focus on the development of “Communicities” or integrated urban developments combining lifestyle retail areas, prime offices, schools, health care, themed residences and leisure spaces. —