Vista REIT Inc., the real estate investment trust company of Vista Land & Lifescapes Inc., plans to expand its portfolio to more than 500,000 square meters in gross floor area over the next three years.
Based on the three-year investment strategy filed with the Philippine Stock Exchange, VREIT aims to double its portfolio from 256,403 sq. m. of gross floor area to 512,806 sq. m. by 2025.
VREIT said it aimed to diversify its portfolio by acquiring commercial assets owned by Vista Land that are located within its integrated developments in key urban areas.
“The principal investment mandate and strategy of VREIT is to invest on long-basis in income generating real estate that will deliver enhanced recurring income and profitability that meets a select set of criteria, such as location and tenant profile,” the company said.
“The fund manager and property manager intend to work towards maximising investment yields and profitability margins by increasings gross revenue as well as net operating income margins over time through active management of the properties,” it said.
These acquisitions will enable VREIT to achieve at least 10 percent in annual shareholder return, it said.
The company said it planned to fund acquisitions through combination of debt and equity.
VREIT’s portfolio consists of 10 community malls and two office buildings. These community malls are located in Metro Manila and nearby provinces.
Its parent firm’s commercial assets include 31 malls, seven office buildings and 69 commercial centers with a combined gross floor area of 1.6 million sq. m.
Vista Land also has about 3,000 hectares of raw land, also known now as the Vista Estates. It identified various locations that are suitable for commercial developments in the future.
The share price of VREIT rose 2.4 percent Friday to close at P1.71.