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 revenue from its growing network of shopping malls.
Rental revenue went up by 61 percent to P4.5 billion, driving a 77-percent rise in cash flow to P3.3 billion, Starmalls told the Philippine Stock Exchange yesterday.
“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 the sound Philippine macroeconomic fundamentals,” said Starmalls chair Manuel Villar Jr.
“We are also 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 company would deliver additional leasable space in the coming years with the development of its existing 46.9 hectares of commercial land inventory.
This unit will take advantage of Vista Land’s more than 600 hectares of land across the country that are suitable for commercial development for 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 revenue from our existing malls,” he added.
Starmalls is a major developer, owner and operator of retail malls that target mass market retail consumers. —DORIS DUMLAO-ABADILLA