Starmalls brings up profit 53% in 9 months

MANILA, Philippines - Starmalls Inc., the commercial arm of the Villar family’s Vista Land & Lifescapes Inc., sustained double-digit growth in net income in the nine months to September this year.

The company posted a net income of P1.1 billion during the period, up 53 percent, while EBITDA grew 48 percent to P2.1 billion.

Rental revenues reached P3 billion or up 71 percent year on year.

Starmalls chairman Manuel Villar Jr. said the company remains optimistic about the outlook for the retail industry for the year given the country’s growing economy.

Villar said they continue to see sustained growth in the disposable income of Filipinos due to sound Philippine macroeconomic fundamentals.

“In addition, we will be taking advantage of the synergies that developed as a result of our integration into Vista Land,” he said.

Starmalls has allocated P4.8 billion in capital expenditures during the period.

Moving forward, the company is committed to continuously expand Starmalls’ existing network of 17 commercial assets, said company president Jerry Navarrete.

Starmalls is ramping up its expansion program to deliver “additional leasable space in the coming years as it develops the existing 46.9 hectares of commercial land bank.”

It plans to take advantage of Vista Land’s over 600 hectares of land across the country suitable for commercial development.

“The company’s growth rate was rapid as the additional commercial assets we opened during the year started contributing to our financial performance and added to the increased rental revenues from our existing malls brought about by favorable rental reversions and increased occupancy,” Villar said.