Property developer Vista Land & Lifescapes Inc. said Monday it expects net income to hit P9 billion this year, up 11 percent from 2016 after actual profit in the first half climbed 15 percent to P4.5 billion.
Vista Land president Paolo Villar said sales from newly launched residential projects were expected to reach P50 billion this year, or nearly twice the P26 billion worth of projects it launched a year ago.
This is the second time that Vista Land adjusted its planned launches this year. The company in May increased its launches to P42 billion from an initial estimate of P30 billion.
Vista Land launched 25 projects with an estimated value of P28.3 billion in the first half. Most of the projects launched were in low affordable segment of the residential market, with each unit worth P4 million and below.
Villar said the company was bullish on residential sales this year and next as sales to overseas Filipino workers recovered from a year ago, while domestic sales remained strong.
“If things progress well, then we could probably hit P10-billion net income by next year,” Villar said.
Vista Land saw its net income rise 15 percent in the first half to P4.5 billion from P3.9 billion in the same period last year, on strong contribution of residential and rental businesses.
Vista Land said first-half consolidated revenues grew 16 percent to P18.2 billion from the previous year’s 15.7 billion.
Revenues from real estate went up 14 percent to 14.4 billion, a marked improvement from the low single-digit growth registered in the previous year.
Recurring revenues posted a 37-percent increase to P2.9 billion from P2.1 billion in the comparable period last year. Reservations sales sustained the 12-percent growth to P32.3 billion.
“We remain bullish for the industry, given the strong demand for our housing products as well as our commercial space propelled by the stable growth in the disposable income, OF remittances, sound Philippine macroeconomic fundamentals and the government’s drive to accelerate economic activities and infrastructure developments outside Metro Manila, where we have a competitive advantage given that we have the widest geographic reach around the country,” Villar said.
Villar said he was expecting to have 1 million square meters of leasable space from the company’s mall and office developments.