Corporate News

Vista Land earnings jump 11% as leasing revenues surge in Q1

Posted on May 16, 2017

VISTA LAND & Lifescapes, Inc. registered a double-digit growth in earnings and revenues in the first three months of 2017, driven by the stronger contribution of its leasing business.

Vista Land & Lifescapes posts P2.3-billion net income in first quarter of 2017. -- HTTPS://WWW.FACEBOOK.COM/VLLINC/
In a statement, the integrated property company of the Villar family chalked up an 11% uptick in net income to P2.3 billion in the first quarter of 2017 from P2.1 billion in the same quarter last year.

Consolidated revenues stood at P9 billion in the three-month period, 14% higher than the P7.9 billion in the comparable period a year ago.

Leasing revenue climbed by half to P1.44 billion from P961 million in the prior year period, buoyed by the expansion of existing malls that added about 70,000 square meters (sq.m.) of gross floor area (GFA).

Vista Land Chairman Manuel B. Villar, Jr. said this year could be another banner year for Vista Land supported by the continued expansion of its commercial assets and core housing business on the back of sound domestic macroeconomic fundamentals.

“We have seen a continued significant growth in our leasing business as we continue to roll out our expansion programs to achieve our stated target of 1.3 million sq.m. in GFA by the end of 2018,” Vista Land President Manuel Paolo A. Villar was quoted in the statement as saying.

The leasing business now accounts for 28% of earnings before interest, tax, depreciation and amortization (EBITDA) and 22% of net income and this could improve further towards the end of the year, the Vista Land CEO said.

Reservation sales -- considered a barometer of future revenue growth from residential projects -- increased 12% year on year, as Vista Land launched new projects amounting to about P12 billion in the three-month period.

“In addition to the expansion of our rental spaces, which provides stability to our existing core and stable end-user housing business, we will continue to open in new areas across the Philippines as we embark on our next 100 new cities and municipalities in addition to what where we had at end of 2016,” the younger Villar said.

Capital expenditures could hit P35.3 billion for the entire 2017.

Vista Land has one of the largest nationwide footprint among property developers, with presence in 107 cities and municipalities across 44 provinces at end March.

Shares in Vista Land added five centavos or 0.98% to end at P5.15 apiece on Monday. -- Krista Angela M. Montealegre