EARNINGS of Vista Land & Landscapes, Inc. (VLL) dropped 8% in the first quarter due to a decline in project completions when the government imposed lockdown measures in Luzon starting in March.

The Villar-led property developer said in a regulatory filing Wednesday its attributable net income for the three-month period fell to P2.34 billion from P2.54 billion in the same period last year.

Its total revenues slid 3% to P9.93 billion as the coronavirus disease 2019 (COVID-19) pandemic led to the suspension of construction activities, reducing its completion rate of sold inventories during the period.

The disruption led to an 11% drop in revenues from real estate sales, which stood at P7.2 billion for the three months. Rental income improved 34% to P2.2 billion, which VLL attributed to the increase in gross floor area leased out and the implementation of higher rental rates.

But the company warned rental revenues may begin declining in the coming quarters as tenants may start to cancel contracts due to mall closures as a result of the lockdown.

VLL’s costs and expenses for the three months were 4% lower at P6.44 billion. Cost of real estate sales fell 3% to P3.74 billion because of the overall decline in sales across business units.

Operating expenses slipped 6% to P2.69 billion because of a drop in occupancy cost to P118 million from P246 million, a decrease in advertising expenses to P288 million from P378 million, and a drop in commission to P357 million from P409 million.

“For the three-months of 2020, except for the COVID-19 impact…, there were no other seasonal aspects that had a material effect on the financial condition or results of operations of the company,” VLL said.

Shares in VLL at the stock exchange dipped two centavos or 0.51% to P3.90 each on Wednesday. — Denise A. Valdez