Friday, November 14, 2008 [ manilatimes.net ]
By Likha Cuevas-Miel Reporter
Vista Land and Lifescapes Inc. will hold back on land acquisition and product launches next year to conserve cash for tougher times ahead, the firm announced.
The company is taking a “cautious stance” and has revised its capital expenditure from a maximum of P10 billion to P8.5 billion by year-end, said Ricardo Tan Jr., Vista Land senior vice president for finance and chief information officer. By end-September, the company had spent P6.7 billion as it cut back on land banking activities.
To date, the company’s land bank covers around 1,866.7 hectares, 78 percent of which is in Mega Manila area.
Vista Land has trimmed to 36 the 40 projects it announced early this year. At the end of the third quarter, it launched 29 projects worth P23 billion and would break ground the remaining seven within the last two months.
Manuel Paolo Villar, chief finance officer, said there would not be a “drastic drop” in capital expenditures next year as the company is still focused on expanding its horizontal and affordable housing projects. The projects will be funded through internal cash, receivables and debts through loans, notes or commercial papers.
On the other hand, the firm may put on hold leisure projects and condominium projects given that the market has shifted to more affordable homes.
For the past three quarters, Vista Land’s high-end unit Brittany saw a 45-percent drop in sales year-on-year while that of Crown Asia, C&P Homes and Communities Philippines rose 18 percent, 46 percent and 38 percent, respectively.
In addition, the global financial crisis has forced buyers to look into lower-priced home packages. Last year, Vista Land’s most saleable home packages were priced at an average of P3.5 million; this year, buyers went for homes priced at P2.9 million.
For the third quarter alone, the company’s core net income rose by 7.3 percent to P676 million from a year ago; for the first nine months, it jumped by 42.8 percent to P2.29 billion. Real estate sales grew 26.2 percent to P7.8 billion year-on-year on account of strong growth in C&P Homes and Communities Philippines.
Consolidated assets rose almost 8 percent to P47.965 billion while stockholders’ equity was up 4 percent to P32.522 billion.
By Likha Cuevas-Miel Reporter
Vista Land and Lifescapes Inc. will hold back on land acquisition and product launches next year to conserve cash for tougher times ahead, the firm announced.
The company is taking a “cautious stance” and has revised its capital expenditure from a maximum of P10 billion to P8.5 billion by year-end, said Ricardo Tan Jr., Vista Land senior vice president for finance and chief information officer. By end-September, the company had spent P6.7 billion as it cut back on land banking activities.
To date, the company’s land bank covers around 1,866.7 hectares, 78 percent of which is in Mega Manila area.
Vista Land has trimmed to 36 the 40 projects it announced early this year. At the end of the third quarter, it launched 29 projects worth P23 billion and would break ground the remaining seven within the last two months.
Manuel Paolo Villar, chief finance officer, said there would not be a “drastic drop” in capital expenditures next year as the company is still focused on expanding its horizontal and affordable housing projects. The projects will be funded through internal cash, receivables and debts through loans, notes or commercial papers.
On the other hand, the firm may put on hold leisure projects and condominium projects given that the market has shifted to more affordable homes.
For the past three quarters, Vista Land’s high-end unit Brittany saw a 45-percent drop in sales year-on-year while that of Crown Asia, C&P Homes and Communities Philippines rose 18 percent, 46 percent and 38 percent, respectively.
In addition, the global financial crisis has forced buyers to look into lower-priced home packages. Last year, Vista Land’s most saleable home packages were priced at an average of P3.5 million; this year, buyers went for homes priced at P2.9 million.
For the third quarter alone, the company’s core net income rose by 7.3 percent to P676 million from a year ago; for the first nine months, it jumped by 42.8 percent to P2.29 billion. Real estate sales grew 26.2 percent to P7.8 billion year-on-year on account of strong growth in C&P Homes and Communities Philippines.
Consolidated assets rose almost 8 percent to P47.965 billion while stockholders’ equity was up 4 percent to P32.522 billion.
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