MANILA – Vista Land & Lifescapes, Inc., one of the country’s leading integrated property developers, reported on Monday a 39-percent decline in net income to PHP5.5 billion in the first nine months of the year as the coronavirus disease 2019 (Covid-19) continues to impact on its business operations.
Its consolidated revenues also dropped by 25 percent to PHP25.7 billion in the January to September period.
The company, however, saw improvement between its second and third quarters performance in terms of reservation sales brought about by further easement of quarantine restrictions by the government.
“This pandemic continues to impact our performance, both on our leasing and residential businesses. However, as mentioned before, we are glad to have seen encouraging signs of recovery when the economy started to reopen last June,” Vista Land chairman Manuel Villar Jr. said in a statement.
He said the upward trend of the reservation sales was sustained, registering a 35-percent jump from the previous quarter.
“We are also happy to have witnessed the resiliency of the real estate sector through the sustained demand for (the) residential market especially for the house and lot products in the provincial areas. For the first nine months of 2020, over 80 percent of the company’s sales revenue came from our residential products outside Metro Manila,” Villar said.
On the leasing business, its operational gross floor area (GFA) has increased to about 95 percent as government-imposed restrictions started to ease, he added.
The company’s total consolidated assets as of 30 September 2020 stood at PHP286.9 billion.
Vista Land president and chief executive officer Manuel Paolo Villar said they launched five residential projects with estimated value of PHP5.0 billion for the first nine months of the year.
“And are looking at launching more towards the last quarter as the upward trajectory of our sales persist. We also have spent about 71 percent of our revised PHP25.0 billion capex (capital expenditures) budget for the year, which was mostly utilized for the construction of our residential products,” he said.
Villar said the company is also seriously looking at the possibility of doing a Real Estate Investments Trust (REIT) with its 1.5 million square meters GFA leasing portfolio.
“Fifteen percent (15 percent) of our leasing portfolio is composed of BPO (business process outsourcing) office space, which has proven to be the sector’s most resilient market during the time of the pandemic, while the rest of our GFA consists of malls. Most of our mall tenants are offering essential services,” he added. (PNA)