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Friday, March 29, 2024

Vista Land’s income rose 9% in first semester while Century Properties’ earnings hit P457m

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Vista Land & Lifescapes Inc., the country’s leading homebuilder, said Friday net income grew 9 percent in the first six months to P3.84 billion from P3.5 billion in the same period last year on the back of higher sales to overseas Filipinos.

Vista Land said in a disclosure to the stock exchange first-half revenues reached P16.87 billion, up 7.8 percent year-on-year. It said net income in the second quarter jumped 57 percent to P1.65 billion from P1.05 due to low base effect.

“We remain optimistic with the industry especially with the performance of OF remittances, which registered two consecutive months of double-digit growth and are currently at 6.6 percent growth for the first 5 months of the year,” Vista Land chairman Manuel Villar said.

“Demand from OFs remained strong, which contributed to the 14-percent growth in our reservation sales of P29.4 billion for the period. The pandemic also provided a venue for the company to review its strategies and implement various operational efficiency measures which resulted in improvement in our margins,” Villar said.

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Meanwhile, Century Properties Group Inc. said net income amounted to P457 million in the first half, down from P541 million it posted in the same period last year on lower revenue contribution from condominium projects.

CPG said in a disclosure to the stock exchange first-half revenues softened by 2 percent year-on-year to P4.43 billion. It said contribution of in-city vertical projects to the group’s total revenues went down to 47 percent on lower recognized revenue after the management’s decision to adjust capital expenditure deployment to cushion the pandemic’s impact.

Revenues from leasing business contributed 9 percent to total sales and went up 8 percent from last year’s level.

The company’s horizontal affordable housing business unit PHirst Park Homes, a joint venture with Mitsubishi Corp., delivered positive results despite the pandemic. Horizontal developments contributed P1.75 billion in the six-month period, up 89 percent from a year ago.

This was driven by strong sales take-up from continued project launches, sustained collections, and on-target construction.

“Our horizontal affordable housing business remains resilient as it continues to serve the robust demand for affordable housing through our various projects strategically located outside Metro Manila. However, the impact of restrictions and uncertainties are still weighing down the group’s in-city vertical projects as sales, collections, and construction activities continue to be slower than the desired velocity. Likewise, the softening of the leasing market has limited the group’s ability to fully realize the portfolio’s potential for now,” said CPG chief finance officer Ponciano Carreon Jr.

“We will continue with our strategy of keeping a healthy level of liquidity and strong balance sheet and biased investment allocation in favor of resilient and market driven products,” Carreon said.

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