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Vista Land sees more cancellations this year

Friday, April 17, 2009 [ ]

Vista Land and Lifescapes Inc. said Thursday that it sees higher cancellations of home orders is this year as the global economic crisis takes a toll on consumer spending.

Benjamarie Therese N. Serrano, Vista Land president and chief executive, said that last year’s cancellation rate was between 3 percent and 3.5 percent. For the fourth quarter alone, the rate was at 5 percent in horizontal segment and 10 percent in vertical projects.

“We anticipate that it will continue until 2009,” Serrano told reporters.

Vista Land, which depends on overseas Filipinos for 60 percent of its sales, said its revenue has remained strong last year as it posted a growth 27 percent to P10.4 billion from P8.2 billion in the previous year.

Ricardo Tan Jr., Vista Land senior vice president for finance, said the most affected sector last year was the high-end housing project, adding that this year the company will focus on the middle and lower segments of business.

“We will be more prudent this year,” Tan added.

Despite the higher revenue, Tan also said Vista Land’s net income dropped 18 percent to P2.8 billion from P3.45 billion due to the P1-billion one-time restructuring gain booked the previous year.

The property firm’s core net income surged by 42 percent to P3 billion last year from the P2.123 billion recorded in 2007.

“The company focused on the affordable and low-end market segments, resulting in particularly strong growth from Camella Homes and Communities Philippines,” Tan said.

This year, the company is adopting a more cautious stance amid the uncertain market environment.

Vista Land’s planned capital expenditure outlay is now pegged at P7.743 billion, 7 percent less than the P8.331 billion spent last year.

“We launched 32 new projects in 2008—valued at about P25 billion. We will continue to launch more projects this year, but we are being quite conservative given the generally guarded market sentiment,” Tan said.

“Twenty eight projects are in the pipeline for this year, which are expected to generate about P23 billion in revenues,” he added.-- Chino S. Leyco


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