Property developer Vista Land & Lifescapes Inc. (VLL) posted P2.1 billion in first-quarter net profit, down by 14 percent year-on-year, as a challenging environment arising from the prolonged COVID-19 pandemic tempered earnings from its residential development and leasing portfolio.
As an indicator of future revenue trajectory, however, VLL saw a 4-percent year-on-year improvement in reservation sales in the first quarter amounting to P16 billion. This also marked a 14-percent improvement in the sales takeup recorded in the fourth quarter of 2020.
“We remain optimistic with the industry especially with current growth in overseas Filipino remittances for two consecutive months that is poised to hit the full year target growth of 4 percent, according to the BSP (Bangko Sentral ng Pilipinas). Over 50 percent of our sales come from overseas Filipinos,” Vista Land chair Manuel Villar Jr. said in a disclosure to the Philippine Stock Exchange on Monday.
VLL’s real estate revenues slipped by 13 percent year-on-year to P6.3 billion, while the leasing income declined by 9 percent year-on-year to P2 billion.
The decline in the leasing business was cushioned by its portfolio mix, majority of which consisted of essential tenants that remained operational during the pandemic-induced lockdowns.
On its residential business, the company harnessed digital initiatives to expand sales and customer service. It implemented an online reservation system, expanded its online payment options, shifted to virtual property tours and maximized use of social media platforms.
“Our digital initiatives have become a permanent part of the company’s infrastructure,” said Manuel Paolo Villar, VLL president and chief executive officer.