MANILA, Philippines - Vista Land & Lifescapes Inc., the listed property developer of the Villar family, may launch as much as P70 billion worth of projects this year, significantly higher than its original target of P50 billion amid a positive business environment.
In a briefing yesterday, Vista Land president and CEO Manuel Paolo Villar said the company’ net income could hit as much as P10 billion this year.
The environment has been rosy and the demand for residential projects from overseas Filipinos has recovered, Villar said.
Previously, demand from overseas Filipinos in the Middle East slowed down as a result of uncertainties in the region including geopolitical jitters and the oversupply of oil, which translated to a drop in prices, which in turn led to job losses.
“We remain confident about the company’s prospects for the rest of the year as we see a resurgence in our residential business and the continued expansion of our rental spaces,” Villar said.
As of the end of June, Vista Land had already launched 25 projects with a total value of P28.3 billion.
Of the 25, 21 are in the low and affordable segments – four condominiums and 14 projects are located in Butuan City, Iloilo, Batangas, Leyte, Davao, Sorsogon, Zamboanga, Sagay City, San Jose City, Tuguegarao, Pangasinan, Bulacan and Subic.
In the first half, Vista Land reported a 15 percent growth in net income to P4.5 billion as consolidated revenues went up 16 percent to P18.2 billion.
Revenues from real estate went up 14 percent to P14.4 billion, which was a marked improvement from the low single digit growth registered by the company in the previous year.
“We are pleased with our first half results and we are very optimistic we will achieve another record year,” said Vista Land chairman Manuel Villar Jr.
He pointed out the company continues to deliver a solid performance, fueled by the substantial contribution from commercial assets coupled with the regained momentum of our core housing business.
Vista Land recently tapped the domestic debt market with its P5 billion retail bond offering due 2024 and 2027. Proceeds of the bonds would be used for construction of commercial assets and for general corporate purposes.
“Over the last few years, we made significant strides toward improving the company’s credit profile. We have lowered the cost of our borrowing and exrended the maturities of our debt instruments. This is the first 10-year peso retail bond issued by the company, “ the younger Villar said.
Moving forward, the company intends to focus on the development of Communicities, an integrated urban developments combining lifestyle retail, prime office space, university town, healthcare, themed residential developments and leisure components.