The property developer recorded earnings of P9.1 billion, an increase of 10 percent, while revenues rose 7 percent to P29.1 billion.
Vista Land said profit margins also rose as reservation sales, an indicator of future revenues, hit P58.4 billion.
Big picture
Developers are accelerating project developments outside Metro Manila, a market that has long been crucial for Vista Land, enabling the company to reap the benefits of its early strategic positioning.
The capital is experiencing an oversupply of residential condominium units, driven by a looming full ban on Philippine Offshore Gaming Operators and a broader shift from congested urban areas.
Management’s view
“Our performance so far reflects our commitment to our set strategy of asset maximization and optimization as we capitalized on the strong demand from residential projects specifically outside Metro Manila where we have the widest coverage,” said Villar, the founder and chair of Vista Land.
“Our presence in 147 cities and municipalities across the country became apparent when we saw softening demand in Metro Manila due to the effect of the POGO ban,” he added.
Outlook
“We are now reaping the fruits of our various Vista Estate projects across the country, which is one of the factors in the sustained growth in our reservation sales which amounted to ₱58.4 billion as of the end of the period,” Villar said.
“We remain optimistic with the industry, especially in the provincial areas where demand continues to rise,” he added.
Debt payments
Vista Land president Paolo A. Villar said the builder had also addressed looming debt obligations through the sale of offshore dollar bonds.
“In terms of our liability management activities, we have successfully refinanced our upcoming $350 million maturity last August with the issuance of new dollar notes due 2029, and the proceeds were used to pay the $350 million dollar notes in October, thus removing the significant refinancing risk from our balance sheet,” he said.
“We are done with the 2029 dollar notes issuance; what we will be looking at next year is a liability management exercise for our dollar notes maturing in 2027,” he added.
Significant landholdings
Vista Land commands the largest and most geographically diverse portfolio in the Philippines, spanning 147 cities and municipalities across 49 provinces.
Its landbank spans 2,969-hectares in both provincial areas (60 percent) and Metro Manila (40 percent).
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
