VISTA LAND & Lifescapes, Inc. (VLL) hiked its full-year profit growth target to 15-17%, as the Villar-led property developer saw stronger residential sales in the first six months.
“We’re doing better. The sales are better in residential… Our bottomline guidance has increased. Then it’s 12% (profit target), now we’re averaging 15-17%,” VLL President and Chief Executive Officer Manuel Paolo A. Villar said in a media briefing in Makati City yesterday.
The listed firm reported in a regulatory filing that net income jumped by a fifth to P2.63 billion in the second quarter of 2018, on the back of a 20% rise in revenues to P11.06 billion for the period.
This brought VLL’s net income 17% higher to P5.24 billion in the first half of 2018, following a 16% uptick in revenues to P21.14 billion during the first six months of the year.
VLL’s residential business accounted for 84% of its total revenues for the first half, while the leasing segment generated 16%. The sale of units under the affordable brand Camella provided for 77% of total real estate sales.
Under the commercial segment, VLL had 1.12 million square meters in gross floor area (GFA) by end-June. This consisted of 24 malls, 50 commercial centers, and seven offices. The company had 24 Vista Malls with 28,526 in GFA during this period, with plans to add seven more to end the year with 30 Vista Malls.
VLL launched a total of 28 projects worth P23.7 billion in the first half, 17 of which were located outside Metro Manila. The company’s land bank now stands at 41% in the provincial areas, while 59% is in Mega Manila.
The firm said it spent P22.4 billion out of its P50-billion capital expenditure in the January to June period.
Given its performance in the first semester, Mr. Villar said they are gunning for a similar performance in the second half of the year.
“We’re very optimistic to have a similar performance, that we can maintain a similar pace until the end of the year,” Mr. Villar said.
The VLL executive likewise said the company raised its reservation sales target of P72 billion for 2018, but did not disclose exact figures. Reservation sales grew by 18% to P38 billion by end-June.
Mr. Villar said they plan to raise P5-10 billion from a combination of bank loans and retail bonds in the second half. This will be used to finance its capex for the rest of the year.
Shares in VLL were unchanged at P6.04 each at the stock exchange on Monday. — Arra B. Francia