Vista Land okays international bond issue

MANILA, Philippines – Vista Land & Lifescapes Inc., the listed holding firm for most of the real estate assets of the family of Sen. Manuel Villar, has approved the declaration of a cash dividend, equal to 20 percent of its earnings in 2009.

Vista Land said the amount is equivalent to P0.054 per share. Those entitled to receive the dividends are stockholders of record as of Sept. 30, 2010, payable on Oct. 26.

At the same time, Vista Land said its board has also approved the issuance of bonds in the international market.

In a disclosure to the Philippine Stock Exchange, the company said it has authorized management to firm up the details of the proposed bond offering.

Vista Land president Benjamarie Serrano said the company has yet to decide on the final size and use of the the proceeds, although sources said the bond issue may amount to between P5 billlion to P10 billion.

Vista Land’s net earnings grew 40 percent in the first half this year to P1.44 billion from P1.03 billion in the same period a year ago. Revenues reached P5.95 billion, 19 percent higher than the year-earlier level, as sales take-up increased 29 percent to P10.2 billion. The company is eyeing a record P20 billion in sales this year.

Vista Land shares have been performing relatively well. Leading international stock brokerage house Credit Lyonnais Securities Asia-Pacific (CLSA) recently reiterated its “buy” rating on the company’s shares.

 In its latest research report, CLSA’s property sector analyst Leo Venezuela said Vista Land “remains a conviction buy with a 51 percent upside.”

 The company is all set to roll out new vertical development projects, which would bring the total value of its vertical units to P12.5 billion by next year. It is also easing into commercial property development via its existing master-planned communities, which also signals its entry into the leasing business.

 Vista Land is the holding company of five business units - Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences.  

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