Starmalls nets P1.55B

The Villar group’s commercial property arm Starmalls Inc. posted a 71 percent growth in net profit last year to P1.55 billion on higher rental revenues from its growing network of shopping malls.

Rental revenues went up by 61 percent to P4.5 billion, driving a 77-percent rise in cash flow to P3.3 billion, Starmalls reported to the Philippine Stock Exchange on Wednesday.

“We remain optimistic about the retail industry’s outlook for 2017, as we continue to see continued growth in the disposable income of Filipinos, the rising middle class in the country, and sound Philippine macroeconomic fundamentals,” said Starmalls chair Manuel Villar Jr.

“In addition, we are taking advantage of the synergies that we found as a result of our integration with Vista Land,” he added.

The company’s total consolidated assets ended last year at P35.8 billion compared to P31.8 billion in 2015.

Starmalls, a subsidiary of Vista Land & Lifescapes, had 17 commercial assets in its portfolio as of end-2016 and is still continuing to expand its leasable space.

Jerry Navarrete, Starmalls president, said the property firm would deliver additional leasable space in the coming years with the development of the existing 46.9 hectares of commercial land bank.

This unit will take advantage of Vista Land’s over 600 hectares of land across the country that are suitable for commercial development as future expansion.

“The company’s strong growth rate was sustained as the additional commercial assets opened during the year are already contributing to our financial performance, in addition to the increased rental revenues from our existing malls brought about by higher rental reversions and increased occupancy,” he added.

Starmalls is a major developer, owner and operator of retail malls that target mass market retail consumers in the Philippines and is an early mover in this market segment. It sets up its malls in densely populated areas underserved by similar retail malls where transport hubs and key infrastructure are available. It also develops and operates business process outsourcing commercial centers.