Villar-led Vista Land and Lifescapes Inc. said it is confident it will meet its full-year net income and revenue targets on the back of its strong performance in the first nine months.
Manuel Paolo Villar, Vista Land president and chief executive officer, said in a press briefing on Wednesday that the company is on track to hit its P51 billion sales target for 2014 following double-digit profit growth in the nine months to September.
“We are averaging almost P13 billion in sales every quarter and we should be able to hit a record P51 billion in sales for 2014,” said Manuel Villar Jr, Vista Land chairman.
“We’re expecting more momentum next year, for the first and second quarters. I think we’ve been running down on less prime inventory. We’re planning to increase momentum in the first half next year,” the younger Villar said.
For the January to September, Vista Land net income grew 12 percent to P4.24 billion from P3.79 billion last year. Revenues rose to P38.7 billion from P35.5 billion last year.
“Most of our sales have been coming from our core product, which is housing, both in Metro Manila and in the provinces. We fully expect to see continued strong sales performance in the coming years as demand for house and lot continues to be robust, particularly in the mid- to low-end segment of the market,” the Vista Land chairman said.
From January to September, the firm launched 35 projects worth P21 billion, of which 16 were subdivision projects outside Metro Manila such as Cebu, Batangas, Iloilo, Quezon and Isabela.
For the nine-month period, sales largely consisted of projects from unit brands Communities Philippines (47 percent), Camella Homes (27 percent), Crown Asia (11 percent), Brittany (6 percent) and Vista Residences (9 percent).
The Vista Land president and CEO said the company has spent 75 percent or P16.3 billion of its P21.6 billion capex for 2014.
In terms of its land bank, the company has a total of 2,001.2 hectares in store for development, of which 84 percent are owned by Vista Land and 16 percent are the firm’s share in joint ventures.
The firm’s chairman said the company is “seriously looking” to venture into energy generation by installing solar panels on its malls and residential units.
“We’re seriously looking into solar panels in our homes, malls. It’s a possibility. It’s only now that we are looking into it. We’re still studying it, and we’re serious about it,” Villar said.
“No details yet as we’re still studying [it]but our electricity consumption is high, so with opportunities like these, we always wanted to be in the lead. The potential is huge. If that becomes viable, we want to be the first one who will introduce this,” he added.
Aside from solar panels, the acquisition of units being offered by the Philippine arm of the France-based Lafarge Group is another area the group is looking into, Villar said.
“We’re open, but we’re not privy. We’ll look into it. I might form an allegiance with other groups as cement is important to us because we are a construction company as well,” the Vista Land chairman said.
Other expansion plans for Vista Land include setting up a coffee and/or bake shop business to complement its convenience store chain All Day, establishing a mini-marts segment, and completing its two office towers that cater to the business process outsourcing (BPO) sector by the last quarter of 2015.
“We plan to have coffee shops and bake shops beside our All Day convenience stores. We’re experimenting additional formats in some areas. And then we’re also looking at going into mini marts,” Villar said.
“Our BPO towers—one in Taguig and one in The Fort, BGC [Bonifacio Global City]—are set to open by the last quarter next year at the earliest. We have big plans for our BPO towers segment,” he added.
Incorporated in 2007, Vista Land primarily engages in real estate business, mostly in low and middle cost segments, and has been recently working to diversify into the hotel business.KRISTYN NIKA M. LAZO