By Arra B. Francia, Reporter
VISTA LAND & Lifescapes, Inc. (VLL) will be launching at least P60 billion worth of projects this year, as it continues to see strong demand from both its residential and commercial projects.
“We’ll definitely be increasing our project launches this year…we’ll probably launch at least P60 billion worth of projects,” VLL President and Chief Executive Officer Manuel Paolo A. Villar told reporters in a press briefing in Makati on Thursday.
This is 16% higher than the P51.7 billion worth of projects the company unveiled in 2018, composed of 45 residential developments, 11 condominiums, and one residential project for the upper middle class segment.
In a regulatory filing, the Villar-led property developer said it will be spending P40 billion in capital expenditures (capex) to support its expansion plan. Of this, about P25.73 billion will be spent for construction; P7.39 billion will go to land acquisitions or advances to joint venture partners, and P6.88 billion will go to land development.
Mr. Villar noted that this year’s capex is less than the P45.05 billion spent in 2018, as the company has already exceeded its target to have 1.3 million square meters (sq.m.) in gross floor area (GFA) for its commercial space business.
VLL ended 2018 with 1.40 million sq.m. in GFA under its portfolio, after malls and retail stores spanning 344,267 sq.m. The company now has 31 malls, 52 commercial centers, and seven office buildings. The company continues to pursue expansion plans after net income attributable to the parent rose by 16% to P10.24 billion in 2018. Consolidated revenues also went up by 15% to P41.5 billion.
Real estate revenues grew by 15% to P31.9 billion, while leasing income climbed 15% to P6.9 billion.
“We had quite a good year last year, we’re hoping to continue the trend this year. We’re looking at double-digit growth this year,” Mr. Villar said.
VLL also said reservation sales surged 16% to P75 billion, showing the strong demand for residential projects. Its affordable housing segment under the Camella brand accounted for 79% of real estate sales for the period.
“We remain optimistic for the industry given the robust demand in our residential business as well as the continued growth of our leasing propelled by the steady growth in Filipinos’ disposable income, overseas Filipino remittances, and the infrastructure development around the country,” VLL Chairman Manuel B. Villar, Jr said in a statement.
By end-2018, the company had a land bank of 2,801 hectares, 59% of which are in Metro Manila and the neighboring provinces of Cavite, Laguna, Rizal, Batangas, and Bulacan. VLL is currently present in 146 cities and municipalities nationwide.
Shares in VLL slipped 0.69% or five centavos to close at P7.18 each at the stock exchange on Thursday.