Vista Land and Lifescapes Inc has posted 11 percent increase in net earnings in the first half of 2016. The increase resulted mosted from growing leasing business.
In a media briefing on Thursday, Vista land president and chief executive officer Manual Paolo Villar said the company’s net income for the first half of the year climbed to P3.9 billion from P3.5 billion the first half of 2015.
Consolidated revenues also inched up by 9 percent in the first six months of the year to P15.7 billion from P14.5 billion last year.
This was driven by the growth of the company’s recurring revenue, which surged 64 percent in the first half of the year to P2.1 billion from P1.3 billion in the previous year.
“We are evolving from a purely residential company to an integrated company with 23 percent of our business now coming from recurring,” said Villar.
In the first half of the year, Vista Land grew its commercial space portfolio by adding a total of 229,956 square meters of gross floor area (GFA) bring its inventory to 861,029 square meters of GFA.
“We are on track to meet our 1.3 million square meters by the end 2018,” Villar said.
Despite the significant growth in its leasing business, Villar noted that revenues from its residential business still accounted for 80 percent of the company’s consolidated revenues in the first half of 2016, slightly lower than its 84 percent contribution in the first half of 2015.
“In terms of our residential, Camella brand still dominates most of our revenue at 86 percent. Commmunities Philippines or our sales[Camella] outside[of Mega Manila]is 55 percent of the total [residential]revenue registered in the first half. I think it’s going to continue for the rest of the year,” Villar said.
The company’s revenues from its residential business grew by 3 percent in the first six months of 2016 to P12.6 billion from P12.2 billion posted last year.
In terms of project launches, Vista Land noted that it has launched 15 projects worth an estimated total value of about P10.6 billion in the first half of 2016, 14 of which are in the low and affordable segment.
“Vista Land continues to deliver solid performance fueled by the substantial contribution from our commercial assets coupled with the sustained momentum of our core housing business,” Vista Land Chairman Manuel Villar Jr. said in a statement.” We remain optimistic for the industry, given the strong demand for our commercial space and housing products, propelled by the stable growth in the disposable income, OF remittances and sound Philippine macroeconmic fundamentals.”