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Vista Land nets P3.5 B in 2007, up 138%

[ Manila Bulletin Online ] April 3, 2008

Residential developer Vista Land & Lifescapes, Inc. posted 138 percent growth in consolidated net income last year to R3.47 billion from the R1.46 billion it recorded in 2006.

In a press briefing yesterday, Vista Land senior vice president for Finance Ricardo Tan Jr. said the firm recorded revenue from real estate sales of R8.2 billion in 2007, up by 37 percent from R6 billion in the previous year.

"The growth in real estate sales last year was group-wide, as we have seen significant contributions from all our business units," said Tan adding that total sales is seen to grow at least 16 percent to R19 billion this year from R16.6 billion in 2007.

Tan reported that the company’s plans for 2008 include a capital expenditure program of about R12.7 billion, a 76 percent increase from the R7.2 billion of last year. This will be funded mainly by internally generate funds and some borrowings.

He noted that the firm has cash of over R6 billion and receivables of about R6.5 billion so this year’s capex is more or less covered.

"We launched 28 new projects in 2007, both horizontal and vertical with a project value of approximately R20 billion. We have lined up 43 more projects to be launched in 2008 with a combined project value of about R53 billion," said Tan.

Despite the US subprime woes, Tan said Vista remains upbeat about the local property sector because of the Philippines’ stable economic growth, moderate inflation and low interest rates.

He added that "rising incomes of overseas Filipinos, and continued deployment of Filipinos abroad, coupled with a limited supply of quality housing, should allow strong brands such as Brittany, Crown Asia and Camella to continue to do well."

Overseas Filipinos account for a whopping 60 percent of Vista Land’s customers with Filipinos in the US accounting for 9.6 percent. Tan noted that sales to Filipinos actually improved last year despite the subprime crisis.

"While we are constantly exploring opportunities for alternative revenue streams, we remain focused on housing, with emphasis on mid to affordable segments," said Tan adding that Vista Land will broaden its market presence further by increasing its product range and number of projects.
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