Vista Land & Lifescapes Inc. earmarked a record P50 billion in capital expenditures this year, up 34 percent from P37.4 billion spent last year, as the company plans to aggressively expand its leasing portfolio.
Vista Land president and chief executive Manuel Paolo Villar said in a press briefing Wednesday the company aimed to build up leasable space to 1.4 million square meters, up 32 percent from 1.06 million sq. m. at the end of 2017.
Villar said malls and commercial centers as well as offices for the business process outsourcing industry would comprise the bulk of the commercial space set to be rolled out this year.
“We are confident about hitting out target 1.4 million square meters of leasable space by end 2018, given the pipeline of growth and positive response on the malls that we have opened,” Villar said.
The group’s leasing business as of end 2017 accounted for 24 percent of the net income and 17 percent of revenues.
Meanwhile, Vista Land said net income in 2017 rose 12 percent to P9.06 billion from P8.1 billion in 2016, while total revenues increased 13 percent to P36 billion from P31.8 billion a year ago.
Real estate sales climbed 10 percent to P27.6 billion as the company launched 55 residential projects in 2017 with total sales value of P60.2 billion.
Reservation sales grew 12 percent to P64.5 billion.
Leasing revenues surged 28 percent to P6 billion from P4.67 billion in 2016 as it ended the year with 22 malls, 50 commercial centers and 7 BPO offices.
“We are very pleased to report that 2017 is another banner year for the company. We are taking advantage of the synergies that we have unlocked between our residential and leasing business,” Vista Land chairman Manuel Villar said.
“We remain optimistic for the industry given the robust demand for our housing products as well as success in our leasing business propelled by steady growth in the disposable income, OFW remittances, and sound Philippine macroeconomic fundamentals and the government’s drive to accelerate economic activities and infrastructure development outside Metro Manila where we have competitive advantage,” he added.