MANILA, Philippines - Vista Land and Lifescapes, the country’s largest player in the residential housing segment of the property industry, is positioned for sustained growth with its solid fundamentals, the group’s CFO Manuel Paolo A. Villar said.
“Barring macroeconomic or other developments that might adversely impact the sector, Vista Land has the management talent and experience, the mix of available resources, and the strategies that will enable it to grow by efficiently addressing market opportunities,” said Villar.
Financially, he said the group has maintained good liquidity, in part by selling receivables. In addition, Vista Land has managed foreign exchange risk via pre-payment of old dollar-denominated debt. “We have room to borrow, and we are availing of other options, for example creative financing arrangements such as developmental loans, where lending is tied to the progress of specific projects, to increase efficiency,” the CFO said.
Vista Land has an active investor relations program that features quarterly briefings on the performance of the group, and regular participation in overseas conferences to ensure that the international financial community and investors are apprised of developments in the local industry and specifically the Vista Land group, Villar said. Both local and overseas investors are taken on periodic visits to the group’s projects to inspect first-hand the progress of ongoing developments, including model homes available to buyers, as well as completed Vista Land communities that are already thriving.
Villar noted that since 2008, local and international brokerage and investment analysts have been uniformly positive on their “buy” recommendations for Vista Land stock, which they rate as undervalued. CLSA Asia-Pacific Markets, in a report by analyst Leo Venezuela issued in November 2009, said that Vista Land stock has the highest potential upside at 79 percent, based on a price target of P3.54 over the next 12 months. Similarly, Credit Suisse analyst Gilbert Lopez, in a report in October, 2009, maintained an “outperform” rating for Vista Land, one given if the analyst believes that the stock’s total return is expected to exceed the industry average by at least 10 - 15 percent or more, depending on perceived risk, over the next 12 months. The Credit Suisse report also stated a potential upside of 77.9 percent, based on a price target of P3.63. The report said Vista Land remains the most attractively valued in the local property sector.
Setting Vista Land apart from competitors is its geographical spread of properties all over the Philippines, the biggest among all local developers. With its industry participation ranging from affordable to high-end segments, and horizontal along with vertical residences, the group now has 127 developments in 19 provinces and 44 cities and municipalities, and is launching a series of new projects in 2010.
Villar said that coupled with the pioneering leadership in affordable housing which it has sustained with its 33-year old Camella brand, the group has consistently served the housing needs of Overseas Filipino Workers (OFWs), who comprise about 60 percent of Vista Land property buyers.