Friday, November 14, 2008 Villar's real estate posts growth
PROPERTY firm Vista Land and Landscapes Inc. owned by Senate President Manuel Villar Jr. said Thursday that remittances coming from overseas Filipino workers (OFWs) contributed mainly to the continued growth of their real estate business.
"In spite of a more challenging market environment, our revenues continue to grow; while our expenses have been kept under control," said Ricardo Tan Jr., senior vice president for finance and chief information officer of Vista Land.
Tan said Vista Land core net income increased by 42.8 percent for the first nine months of 2008 from the P1.603 billion it recorded in the same period in 2007
In a disclosure to the Philippine Stock Exchange (PSE), Tan said its revenue from real estate sales grew by 26.2 percent to P7.799 billion in the first three quarters of 2008, from the P6.181 billion in the same period last year.
"The increase in real estate sales for the period was led by the strong growth in C&P Homes and Communities Philippines revenues," he added.
Real estate revenues of C&P Homes jumped 76 percent to P2.627 billion, while Communities Philippines sales grew by 55 percent to P2.527 billion. Sales take-up for the period also rose by 10 percent to P13.326 billion.
He noted that OFW market remained robust, with continued demand from the Middle East and Europe.
He added that Vista Land's expansion in the regions allows them to further tap demand from Filipino workers for products from their hometown provinces.
According to Tan, the good results this quarter have made them focus on the middle to low end market segments and on expanding its nationwide presence in the provinces.
As of end September 2008, the company's consolidated assets totaled P47.965 billion compared to the 2007 year-end level of P44.422 billion.
"We have a solid balance sheet. We continue to be highly liquid and have a lot of room to lever up," explained Tan.
For 2008, Vista Land has launched a total of 29 new projects with an estimated value of about P23 billion. 22 of the said projects are horizontal developments, and launches have included nine areas outside Metro Manila.
"Given the more difficult business environment, we are adopting a cautious stance moving forward," said Tan. "Our financial performance has been good and we intend to maintain our strong balance sheet and our liquidity."
The company reported a total land bank of 1,866.7 hectares, 78 percent of which are located in the metropolis. It has spent P6.7 billion out of its P8.5 billion capital expenditures budget for 2008.
Vista Land, the country's largest homebuilder, is the holding company of four business units, namely: Brittany, Crown Asia, C&P Homes, and Communities Philippines. (MSN/Sunnex)
