Vista Land & Lifescapes, Inc.
Vista Land targets to have 60 malls by 2020

VISTA LAND & Lifescapes, Inc. is pouring in P50 billion in capital expenditures in 2018, as the company embarks on a three-year program to nearly triple its mall developments by 2020.

In a statement issued Thursday, the Villar-led firm said bulk of the spending for 2018 will be for the development of malls, in line with its vision to reach 1.4 million square meters of gross floor area from leasing spaces by the end of the year. Malls will corner 85% of this target, while office projects will account for 15%.

Vista Land is ramping up its spending to reach its target of 60 malls by 2020, which are expected to generate a steady stream of leasing revenues. It currently has a total of 22 malls, including those operated by its subsidiaries.

This year’s P50-billion capex is 42% higher than the P35.3-billion it has committed to spend in 2017.

“Our company is poised to have another banner year for 2018 as our additional leasable spaces are now contributing significantly to our current financial results in addition to the sustained double digit growth in our residential business,” Vista Land President and Chief Executive Officer Manuel Paolo A. Villar said in a statement.

Vista Land’s net income grew by 12% in the nine months ending September to P7.1 billion, following a 12% year-on-year increase in revenues to P26.9 billion during the period.

Of this, leasing income accounted for P4.3 billion, 30% higher than its contribution to revenues a year prior. The residential segment was the company’s primary growth driver as sales reached P20.8 billion for the period.

The company has earlier announced its P10-billion net income target for this year, 11% higher than the projected P9 billion it expects to have made in 2017.

Vista Land continues its expansion program as it expects more demand for both residential and office spaces.

“We remain optimistic for the industry, given the strong demand for our commercial spaces and housing products, propelled by the stable growth in the disposable income, OF (overseas Filipino) remittances and sound Philippine macroeconomic fundamentals,” Vista Land Chairman Manuel B. Villar, Jr. said in a statement.

Vista Land is currently present in 133 cities and municipalities across 46 provinces. Considered the largest property developer for horizontal communities, the company’s long term goal is to establish its presence in around 200 cities.

Pls don't follow me....I'm lost too! hehe
I'm positioned for this year..aren't you?

Spread out and multiply.
Spread your portfolio and let them multiply.

Villar group set for diversification

After building a fortune through real estate development, the family of “brown taipan” Manuel Villar intends to venture into other capital-intensive businesses like telecommunications, integrated gaming and infrastructure.

These new businesses will be pursued outside publicly listed Vista Land & Lifescapes (VLL), company president Manuel Paolo Villar said last week.

In telecommunications, the family is vying for the chance to be the country’s third telco player and is now looking for prospective partners, Villar said.

“The family is looking seriously at getting involved in the telecom side,” Villar said. “When I say seriously, it’s possibly a national involvement.”

The Villars’ Streamtech Systems Technologies Inc. is seeking congressional franchise to provide a nationwide telco service. The application has hurdled the House of Representatives late last year and is now awaiting Senate approval.

Asked about rumors that Golden Bria Holdings—formerly Golden Haven which was rebranded to reflect plans to do business not just for the dead but also for the living—would be the Villars’ vehicle for the telco foray, Villar refused to make a comment.

Shares of Golden Bria have been sizzling in the stock market since January, defying market correction. It is now valued by the stock market at close to P194 billion as share price surged by 13.9 times from the end-2017 level to P303 each.

Asked why the group was interested in going into the telco business when other third players like the Gokongwei and San Miguel groups had both sold out, Villar said the group would come up with a business plan with the benefit of hindsight.

Being a property-based group may prove to be an advantage for the company and its plan to go into telecom.

“We have a lot of areas in the Philippines that we’re developing and could be used for telecom infrastructure,” he said.

Gaming is another area that the Villar family is “seriously looking” at outside Vista Land, Villar said.

“I think the prospect for responsible gaming is good. There’s market demand for that and the family has real estate assets that will be useful. It’s a solid business to be (in),” he said.

The Villar group is among those that have submitted applicants for gaming license to state-run Philippine Amusement & Gaming Corp. before Malacanang ordered a moratorium on the processing of new applications.

The group is also keen on investing in the infrastructure space but not in toll roads, Villar said.

Villar’s brother, Mark, is current public works and highways secretary and it was thus implied that the group would stay away from public toll road projects to avoid conflict of interest.

The family is keen on projects that will contribute to national development, adding that airport development is one possibility.



Vista Land secures P500-M corporate notes for capex

VISTA Land & Lifescapes, Inc. (VLL) has secured corporate notes amounting to P500 million to partially finance this year’s capital expenditures.

In a disclosure to the stock exchange on Friday, the listed property developer said the corporate notes are due 2028 with a fixed interest rate of 7.4985% per annum.

The corporate notes were issued to Eastwest Banking Corp., as per a corporate notes facility agreement the parties signed earlier this month. China Banking Corp., China Bank Savings, Inc., and Security Bank Corp were the note holders, while China Bank Capital Corp and SB Capital Investment Corp were tapped as joint lead underwriters.

China Bank Capital also acted as sole issue manager and sole bookrunner.

China Banking Corp. — Trust and Asset Management Group was the issuance’s facility agent, while VLL’s subsidiaries Brittany Corp., Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc., and Starmalls, Inc., were the subsidiary guarantors.

The P500-million corporate note issuance is in addition to the P7.7-billion note facility the company secured early this month, which will also be for VLL’s 2018 capex. The initial note issuance consisted of seven-year corporate notes worth P1.7 billion carrying an interest rate of 7.4913% per year, and 10-year corporate notes worth P6 billion with a coupon rate of 7.7083% per annum.

The Villar-led firm has committed to spend P50 billion in capex this year, in order to expand VLL’s leasable space to 1.4 million square meters. The company also looks to end the year with 30 shopping malls, from 22 at the end of 2017.

Earnings of VLL jumped by 13% to P2.6 billion in the first quarter of 2018, lifted by a 12% uptick in revenues to P10.1 billion during the same period.


...aba! malakas ang loob ni Manny V.! Tongue

Villar’s VLL raises 2018 profit target

VISTA LAND & Lifescapes, Inc. (VLL) hiked its full-year profit growth target to 15-17%, as the Villar-led property developer saw stronger residential sales in the first six months.

“We’re doing better. The sales are better in residential… Our bottomline guidance has increased. Then it’s 12% (profit target), now we’re averaging 15-17%,” VLL President and Chief Executive Officer Manuel Paolo A. Villar said in a media briefing in Makati City yesterday.

The listed firm reported in a regulatory filing that net income jumped by a fifth to P2.63 billion in the second quarter of 2018, on the back of a 20% rise in revenues to P11.06 billion for the period.

This brought VLL’s net income 17% higher to P5.24 billion in the first half of 2018, following a 16% uptick in revenues to P21.14 billion during the first six months of the year.

VLL’s residential business accounted for 84% of its total revenues for the first half, while the leasing segment generated 16%. The sale of units under the affordable brand Camella provided for 77% of total real estate sales.

Under the commercial segment, VLL had 1.12 million square meters in gross floor area (GFA) by end-June. This consisted of 24 malls, 50 commercial centers, and seven offices. The company had 24 Vista Malls with 28,526 in GFA during this period, with plans to add seven more to end the year with 30 Vista Malls.

VLL launched a total of 28 projects worth P23.7 billion in the first half, 17 of which were located outside Metro Manila. The company’s land bank now stands at 41% in the provincial areas, while 59% is in Mega Manila.

The firm said it spent P22.4 billion out of its P50-billion capital expenditure in the January to June period.

Given its performance in the first semester, Mr. Villar said they are gunning for a similar performance in the second half of the year.

“We’re very optimistic to have a similar performance, that we can maintain a similar pace until the end of the year,” Mr. Villar said.

The VLL executive likewise said the company raised its reservation sales target of P72 billion for 2018, but did not disclose exact figures. Reservation sales grew by 18% to P38 billion by end-June.

Mr. Villar said they plan to raise P5-10 billion from a combination of bank loans and retail bonds in the second half. This will be used to finance its capex for the rest of the year.


Camella to introduce ‘COHO’ brand for new condominium projects

DAVAO CITY — Vista Land and Lifescapes, Inc.’s Camella brand will be introducing the CondoHomes (COHO) lifestyle concept in its three upcoming condominium projects and existing properties in Davao City.

The COHO lifestyle combines amenities such as coffee and bake shops, 24/7 convenience store, and other commercial shops within the condominium complex.

“The plan is every project there is the mall, grocery store All Day Supermarket, Bake My Day, and Coffee Project will be set up… That’s what sets us apart from other developers,” Rey C. Montoya, Mindanao operations head for Camella Condo Homes, told BusinessWorld in an interview.

Mr. Montoya said the first of these new developments would be the COHO Terraces project in Ma-a, scheduled for groundbreaking within the fourth quarter this year.

The COHO Terraces will sit on a 1.8-hectare area consisting of five buildings, each with 486 units.

Pre-selling for the project already started last year and “so far, it is very good,” he said.

Another project is the COHO Acropolis, to be built on a 1.6-hectare property in Lanang.

Mr. Montoya said the general plan is to use one hectare for the residential component, which would all be studio-type units, and 600 square meters for the shops.

Start of construction is targeted by the second quarter of 2019.

Plans for the third COHO project, to be located in the Buhangin area, will be finalized this month.

For existing projects, Mr. Montoya said they will be opening a Coffee Project shop at the Camella Northpoint along J.P. Laurel Avenue and a mall at the subdivision in Mintal.

“When we speak of launching, what we just do is usually a sellers’ launch, but we will launch it in a big way hopefully this quarter along with the three projects,” he said.

In Cagayan de Oro City (CDO), a Coffee Project has recently been opened at the Loop Towers, a two building development with units in the first building set for turn-over by December.

“We launched the brand COHO last year because in the major cities Davao and CDO, there is a high demand for residential, especially… (from) the young professionals, but the problem is there is not much house and lot available, we see condominium as a future home-buying (segment),” Mr. Montoya said. 


VLL plans to offer P10B in retail bonds

VISTA LAND and Lifescapes, Inc. (VLL) plans to issue up to P10 billion worth of fixed-rate retail bonds, it told the stock exchange on Monday.

The Villar-led property developer said its board of directors has approved the issuance of peso-denominated fixed-rate retail bonds with a base size of up to P5 billion plus an oversubscription option of up to P5 billion.

The offering will be taken from the company’s remaining P15 billion under its shelf registration at the Securities and Exchange Commission. The company raised P5 billion last year from the first tranche of the P20-billion shelf.

VLL named China Bank Capital Corp. as the issue manager for the offering.

The company earlier said that it plans to raise up to P10 billion from the combination of bank loans and retail bonds to finance its capital expenditures. It committed to spend P50 billion for the expansion of its residential and commercial developments. It has spent P22.4 billion during the first half.

At the same time, VLL’s board of directors extended its ongoing share buyback program until Nov. 5, 2020. The share buyback program was originally set to expire on Nov. 11, involving up to three billion shares in the company. So far, VLL has 1.4 billion shares left from the program.

“The board and management of the company believe that its shares are trading at a price level that is lower than the fair value thereof,” the company said.

Shares in VLL were unchanged after Monday’s trading session at P5.28 apiece.

VLL booked P5.24 billion in net income in the first six months of 2018, 17% higher year-on-year after revenues also climbed 16% to P21.14 billion. The company’s residential unit accounted for 84% of total revenues in the first half, while the leasing segment provided 16%.

The company looks to expand its full-year 2018 profit by 15-17%, banking on the strength of its residential business. Its portfolio of brands include Camella Homes, Brittany, and Crown Asia, among others. The affordable brand Camella alone generated 77% of total real estate sales from January to June.

Reservation sales are expected to hit P72 billion by the end of the year.

The company also targets to end the year with 30 Vista Malls under its commercial segment. By end-June, VLL’s commercial unit spanned 1.12 million square meters from 24 malls, 50 commercial centers, and seven offices. 

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...earnings report, quite good

Vista Land profits grow by 16% in Q3

VISTA LAND & Lifescapes, Inc. (VLL) grew its attributable profit by 16% in the third quarter of 2018, boosted by the double-digit increase in both its housing and rental businesses.

In a regulatory filing, the Villar-led property developer posted a net income attributable to the parent of P2.99 billion, better than the previous year’s P2.57 billion in the same period. Revenues stood at P9.91 billion, 15% higher year-on-year.

This pushed the listed firm’s nine-month attributable profit 16% higher to P8.09 billion, on the back of a 16% uptick in revenues to P31.05 billion.

“We are very pleased with our nine-month performance and we are well poised to achieve our revised growth targets for the year,” VLL Chairman Manuel B. Villar, Jr. said in a statement.

The company delivered a 16% increase in real estate revenues to P20.8 billion for the nine-month period, which accounted for 83% of revenues. Sales from the Camella brand contributed bulk of real estate revenues at 80%, followed by Vista Residences, Crown Asia, and Brittany.

Leasing income meanwhile provided the remaining 17% of revenues, rising 19% to P5.2 billion.

VLL’s commercial space hit 1.16 million square meters across 26 malls, 50 commercial centers, and seven offices by end-September.

Reservation sales went up by 17% to P57 billion, which the company noted is faster than its 12% sales growth guidance for the entire year.

“We’re cautiously optimistic about Q4. Based on Q3 we still see the trend continue. Our financial targets, we will track that because we are realizing revenues now that were sales before,” VLL President and Chief Executive Officer Manuel Paolo A. Villar said in a press briefing in Makati on Wednesday.

The company has already spent P34.9 billion in capital expenditures from January to September, from its P50-billion budget for the year.

VLL plans to launch more than P10 billion worth of residential projects in the fourth quarter, in addition to the P38 billion it unveiled in the first nine months.

For its leasing portfolio, the company looks to add another 240,000 sq.m. to its GFA in the final quarter, in order to hit its target of 1.4 million sq.m. this year.

VLL is expecting a 15-17% growth in earnings this year, as well as a 15-17% growth in reservation sales.

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