Villar Land sets final property fair value at P52.74B, down from P1.33T

VILLAR LAND Holdings Corp. has set the final audited fair value of its newly acquired properties at P52.74 billion, according to its 2024 annual report filed with the Securities and Exchange Commission (SEC), sharply lower than an earlier estimate of P1.33 trillion that drew regulatory scrutiny.

The valuation covers 366 hectares of prime land within Villar City, a 3,500-hectare master-planned development spanning Metro Manila and Cavite. Villar Land acquired the properties through its purchase of Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corp. for P5.2 billion on Sept. 30 last year.

In its filing on Thursday, the company said the properties were initially appraised using the income approach, yielding an estimated value of about P1.3 trillion. After discussions with its external auditor, Punongbayan & Araullo (P&A), Vil-lar Land adopted the market approach for its audited financial statements.

“Appraisal reports were obtained from SEC-accredited property appraisers to support the fair value measurement… The company agreed to use the valuation based on market approach,” the report said.

According to Note 28 of the audited financial statements, the fair value of investment properties was disclosed at P52.74 billion, while the properties were recorded at P8,759,321,390 cost, in compliance with Philippine Financial Reporting Standards (PFRS).

P&A identified the valuation as a key audit matter, citing “significant judgments and high estimation uncertainty” in determining fair values. The audit report noted that the market approach relies on subjective inputs such as comparable sale prices, bargaining allowances, location, topography, and amenities, making valuations highly sensitive to assumption changes.

The auditors said they performed extensive procedures, including reviewing appraisal reports, testing assumptions against market data, and engaging independent valuation specialists to validate the figures.

The adjustment follows a SEC show-cause order issued to E-Value Phils., the original appraiser, to explain its P1.33-trillion valuation. The regulator also imposed P12 million in fines on Villar Land and 11 of its officials in August for delayed submission of audited financial statements, citing violations of the Securities Regulation Code.

The company reported a net income of P1.423 billion for 2024, slightly higher than P1.416 billion for 2023, marking a 0.5% increase year on year. The improvement was driven by higher interment and chapel service revenues, which grew 23% and 43%, respectively, offsetting a 26% decline in real estate sales.

Total assets surged 28% to P35.75 billion from P27.98 billion in 2023, largely due to the Villar City land acquisition and reclassification of investment properties. Investment properties at cost jumped from P76 million to P8.76 billion, an increase of P8.68 billion or 11,462%, while fair value disclosure rose to P52.74 billion.

Equity declined slightly by 3% to P13.67 billion, while liabilities rose 59% to P22.08 billion, reflecting higher payables and related-party obligations linked to the acquisition.

EARLIER UNAUDITED DISCLOSURE

On March 31, Villar Land reported a net income of P999.72 billion for 2024, up from P1.46 billion the previous year, attributing the spike to fair value gains on investment properties that ballooned to P1.33 trillion from P59 million in 2023.

Revenue fell by 25% to P3.58 billion as real estate sales declined by 26% to P3.31 billion due to lower residential unit sales.

Villar Land, formerly Golden MV Holdings, Inc., changed its name in November 2024 following an amendment to its articles of incorporation. It is among the country’s largest developers of memorial parks under the Golden Haven brand and mass housing projects through Bria Homes.

At the local bourse on Thursday, shares of Villar Land were down by 29.97% or P688 to close at P1,608 apiece. — Beatriz Marie D. Cruz and Arjay L. Balinbin