Residential revenues buoy Vista Land profit
Higher residential revenues and lower costs in the first quarter buoyed the bottom line of Vista Land and Lifescapes Inc. by 5 percent to P3.4 billion.
In a stock exchange filing on Tuesday, Vista Land said revenues from real estate sales had grown by 5 percent to P5.85 billion in the January to March period.
The developer led by real estate mogul Manuel Villar attributed this to a rise in the number of sold units across its portfolio, including Crown Asia, Vista Residences, Brittany, Communities Philippines and Camella Homes.
Forfeitures, or contract cancellations, during the quarter also declined. However, this resulted in lower parking, hotel, mall administrative and processing fees and other revenue at P338 million, down 9 percent.
At the same time, costs dipped by 5 percent to P4.4 billion, with lower operating expenses offsetting an increase in real estate costs.
Based on Vista Land’s financial statement for the quarter, operating expenses dropped by 16 percent to P2.4 billion due to a decline in professional fees and travel-related costs.
Vista Land’s stronger first quarter comes despite a challenging environment for the real estate sector, particularly in Metro Manila, where thousands of condominium units remain unsold.
In its case, Vista Land’s flagship Camella Homes project has a strong presence outside the National Capital Region.
Vista Residences, on the other hand, has a wider presence in Metro Manila cities, although it also has properties in Cagayan de Oro, Cebu City and Baguio City.
Earlier this month, the company announced that its subsidiary, VLL International Inc., had secured a $150-million loan to repay existing debt and fund its operating expenses.
VLL, which was created for the purpose of issuing debt papers, obtained the syndicated term loan facility at a rate of 6.40509 percent per annum. The loan agreement was signed with Sumitomo Mitsui Banking Corp. Singapore Branch and Sumitomo Mitsui Banking Corp.
