Vista Land eyes P27 billion capex for 2021

MANILA, Philippines — Vista Land & Lifescapes Inc., the Villar-owned property developer, is looking at P27 billion in capital expenditures this year, which will largely go to construction and land development.

The amount is higher than the P25 billion announced for 2020.

Vista Land posted a net income of P2.1 billion in the first quarter, down 14 percent from a year ago.

Vista Land chairman Manuel Villar Jr. said the company remains optimistic about the industry, especially with the growth in overseas Filipino remittances for two consecutive months.

“Over 50 percent of our sales come from overseas Filipinos and the demand from the sector remains resilient amid the current challenging time,” Villar said.

The rollout of vaccines would also help revive the economy, he said.

“We are also looking forward to the vaccination rollout of the country in relation to the further opening of the economy which will benefit not just our industry, but also the country as a whole.”

The company saw continued quarterly improvement as reservation sales for the period hit P16 billion, up four percent from year ago levels and 14 percent higher compared to the fourth quarter.

Real estate revenue was down 13 percent to P6.3 billion while leasing income was nine percent lower at P2 billion.

“The company’s leasing business has the advantage of having majority essential tenants, which is the main reason for the better performance of its retail properties. In terms of its residential business, the company took advantage of various digital initiatives to further expand its sales and customer service,” Vista Land said.

According to the company, virtual property tours helped boost sales.

“Our digital initiatives have become a permanent part of the company’s infrastructure,” said Manuel Paolo Villar, president and CEO of Vista Land.

Despite the difficult environment, Vista Land recently completed a $170 million dollar note offering which was part of its liability management exercise.