Vista Land sees profit decline on higher interest expenses

VISTA Land & Lifescapes, Inc. said it expects to report P2.1 billion in consolidated net income in the first quarter, declining by 12% from P2.44 billion a year ago due to higher interest expenses.

“Coming from 2020, our preliminary first-quarter headline numbers this year are quite encouraging,” Manuel Paolo A. Villar, president and chief executive officer of Vista Land, said in a statement on Monday.

The company also said total revenues for the quarter went down by 12% to around P8.7 billion from last year’s P9.93 billion, while its EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to P3.9 billion.

Real estate revenues amounted to P6.3 billion, declining by 13% from the P7.2 billion-P2 billion generated in the first three months of 2020.

Meanwhile, revenues from rentals were estimated to reach P2 billion, which is a 14% drop from P2.2 billion.

Vista Land’s optimism for the year ahead rides on the back of the vaccination program.

“In addition, indicators such as overseas Filipinos (OF) demand remains to be resilient with an upward trend as the host countries of our OFs are on their way to achieving herd immunity,” Vista Land Chairman Manuel B. Villar, Jr. said.

“The projected growth of OF remittances this year also bodes well for the company since approximately 55% to 60% of our sales are OF sales,” he added.

In the January-to-March period, sales reservations picked up by four percent, generating P16.1 billion. The company said the growth seen from June last year was sustained.

Vista Land said it will “maintain its stance on minimal land acquisition” by maximizing its existing land bank instead. The company also aims to be “conservative” in its leasing space expansion plans.

“However, the company has the capacity to [fast-track] construction and to launch projects when opportunities present themselves,” Vista Land said.

The Villar-led property firm also said it is looking to offer a real estate investment trust (REIT) for its office spaces.

Shares of Vista Land at the stock exchange went up by 2.3% or eight centavos on Monday to close at P3.56 apiece. — Keren Concepcion G. Valmonte

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