Starmalls ups earnings 34% in 9 months

MANILA, Philippines — Starmalls Inc., the listed commercial arm of Vista Land & Lifescapes Inc., grew its net income 34 percent in the nine months to September  on higher revenue.

In a regulatory filing, Starmalls said revenue rose 29 percent to P4.1 billion while EBITDA  grew 40 percent to P2.95 billion.

Starmalls chairman Manuel B. Villar Jr. said the company remains optimistic about its growth as Filipinos’ disposable income continues to grow.

“We remain bullish on the retail industry’s outlook for the rest of the year, as we see continued growth in the disposable income of Filipinos due to sound Philippine macroeconomic fundamentals, sustained overseas Filipino remittance growth and the BPO sector contribution,” Villar said.

Villar said the company is also taking advantage of the synergies that have developed as a result of Starmalls’ integration into Vista Land.

One such synergy is the creation of niche markets through malls within or near Vista Land’s existing residential developments.

The company has set aside P9 billion for capital expenditures this year.

Expansion will continue as the company is targeting to have a gross floor area of 1.3 million square meters by the end of 2018.

As of Sept. 30, Vista Land had over one million sqm of gross floor area (GFA) in its commercial assets portfolio.

Starmalls president Benjamarie Therese Serrano said the company’s expansion program would deliver additional leasable space in the coming years as they develop their existing commercial land bank.

The company would also look at Vista Land’s over 600 hectares of land across the country that are suitable for commercial development.

“The company’s growth rate was robust as our expansion programs are already contributing to our financial performance in addition to the increased rental revenues from our existing malls brought about by favorable rental reversions and increased occupancy,” Serrano said.

Starmalls owns and operates retail malls that target mass market retail consumers in the Philippines and is an early mover in this market segment, focusing on locating in densely populated areas underserved by similar retail malls and within close proximity to transport hubs, key infrastructure and the existing Vista Land communities. 

It also develops business process outsourcing commercial centers.

The company’s total consolidated assets amount to P43.7 billion.