Vista Land’s H1 net profit up 10% to P3.1B

VILLAR-led property developer Vista Land & Lifescapes Inc. (VLL) grew first-semester net profit by 10 percent year-on-year to P3.1 billion as its residential development business continued to expand at a double-digit pace.

VLL’s revenues expanded by 10 percent year-on-year in the first six months to P12.2 billion. As an indicator of future revenue growth, reservation sales grew by 9.5 percent year-on-year to P28.3 billion as of end-June.

“We’re on pace with our target,” VLL president and chief executive officer Manuel Paolo Villar said in a press briefing Wednesday night.

For the second semester, Villar said: “It’s reasonably to think we can do the same pace or even better,” adding that the opening of the new tollroad MCX (Muntinlupa-Cavite Expressway) – formerly known as the Daang Hari tollroad – was very beneficial to the group’s Vista City development.

The P50-billion Vista City project, one of VLL’s master-planned estates, is envisioned to become the most expansive business district south of Metro Manila. It has a direct access to the South Luzon Expressway via MCX.

In the first semester, VLL’s gross margins were stable at 50.69 percent compared to 50.65 percent in the previous year.

By revenue mix, low-cost and affordable housing brand Camella still accounted for the biggest bulk of VLL’s revenues at 73 percent. Of these, Community Philippines – the unit that markets Camella housing outside Metro Manila – accounted for 49 percent of total revenues in the first semester, rising from 45 percent in the previous year.

High-rise residential development arm Vista Residences doubled its revenue contribution to 14 percent from 7 percent in the previous year as more revenues were recognized from vertical projects in Quezon City, Makati and University Belt in Manila.

Moving forward, Villar said VLL would continue to be “selective” with vertical residential projects while it would continue to expand its nationwide footprint.

Other brands under the group are Crown Asia and Brittany which respectively contributed 8 percent and 5 percent of total revenues in the first semester.