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.
Shares in Vista Land rose 20 centavos or 3.23%, closing at P6.39 apiece at the Philippine Stock Exchange on Thursday. — Arra B. Francia