Vista Land profit down 14% in first quarter
Villar-led property developer Vista Land & Lifescapes’ (VLL) first quarter net profit was estimated at P2.1 billion, down by 14 percent year-on-year on slower development and leasing revenues during the prolonged pandemic alongside higher interest expenses.
As an indicator of future revenue buildup, however, VLL reported reservation sales of about P16.1 billion in the first three months, sustaining the growth momentum seen since the second quarter of 2020. The first quarter reservation sales level marked a 4-percent increase from the same period last year and a 14-percent improvement from the fourth quarter of 2020.
“We continue to navigate through these still challenging times brought about by the pandemic but with a more optimistic outlook this year especially as the vaccination rollout ramps up. In addition, indicators such as overseas Filipinos demand remains to be resilient with an upward trend as the host countries … are on their way to achieving herd immunity,” said VLL chair Manuel Villar Jr. He said 55-60 percent of sales could be credited to Filipinos abroad.
Manuel Paolo Villar, VLL president and chief executive, said the first quarter figures were still “quite encouraging.”
The younger Villar noted VLL was expected to report total revenues of about P8.7 billion, representing a decrease of 12 percent year-on-year, with real estate revenues at around P6.3 billion, representing a 13-percent year-on-year decline. He also estimated leasing income at P2 billion, down by around 9 percent year-on-year.
“Our consolidated net income was approximately P2.1 billion representing a decrease of approximately 14 percent year on year primarily due to higher interest expense, while Ebitda (earnings before interest, taxes, depreciation and amortization—a measure of cash flow) was at approximately P3.9 billion representing a decrease of approximately 7 percent year on year,” he added.
VLL expects to maintain its stance on minimal land acquisition in order to maximize existing assets and be conservative in terms of its leasing space expansion program.
However, VLL cited its capacity to fast-track construction and to launch projects when opportunities present themselves.
VLL also aims to be “proactive” in its liability management policy and is looking at doing a real estate investment trust (REIT) listing for its office space.
To address the COVID-19 pandemic, VLL together with the rest of the Villar Group is set to vaccinate its workforce across the Philippines. The group has ordered vaccines from Moderna and Oxford-AstraZeneca.
VLL also plans to issue new US dollar notes and draw down from its existing medium-term notes program.
