Vista Land and Lifescapes Inc. of the family of former senator Manuel Villar expects rental income to hit over P4 billion this year, as the company starts to transform itself from a purely residential developer into an integrated property company.
Vista Land president and chief executive Manuel Paolo Villar said in a press briefing the company was on track to hit its target of 1 million square meters of leasing portfolio by 2017, after adding malls and office space starting next year.
Vista Land generated P2.1 billion in rental income in the first six months of 2016, up 64 percent from P1.3 billion year-on-year. It accounted for 23 percent of the group’s cash-flow and 13 percent of revenues,
“I remain confident about the company’s prospects for the rest of the year as we continue to expand our rental spaces which compliment our existing core and stable end-user housing business,” Villar said.
“We ended the period with a gross floor area of over 860,000 square meters of investment properties. A significant proportion of our Ebitda now comes from our recurring commercial leasing business and this proportion is growing as we continue the expansion of our investment properties,” he added.
Meanwhile, Vista Land said net income in the first six months of the year rose 11 percent to P3.9 billion from P3.5 billion on year.
Consolidated revenues increased nine percent to P15.7 billion from previous year’s P14.5 billion.
Revenues from residential development rose three percent in the first half of the year to P12.5 billion from P12.18 billion on year.
Villar attributed the weaker first residential revenues to the slowdown in sales to migrant Filipino workers.
Villar expects residential sales to continue to remain weak for the rest of the year.
Vista Land in the first half of the year launched P10.6 billion worth of residential projects, significantly lower than P27 billion in the same period last year.
Reservation sales remained stable at P29 billion, or on track to at least match last year’ P56 billion.
