BY ALBERT CASTRO
[ Malaya.com.ph ] July 14,2010
Realty firm Vista Land and Lifescape Inc. (Vista Land) is moving to leverage the equity built by its various brands to push the company’s name.
As it is, the units appear to overshadow the Vista Land brand in real estate market, company president Therese N. Serrano said.
"What we intend to do is integrate. Normally yung sikat kasi are the brands. So now we want to integrate and develop it. Kasi hindi masyado na-ha-highlight yung masterplan project because stronger yung brand... So we want to integrate now under Vista Land," said Serrano.
"This year we want to make Vista a stronger brand, although it’s a holding company" she added.
Some market observers, however, see the move as intended to push the company’s share price, which at P1.98 per share as of last trading is selling a little over seven times its P0.27 earnings per share in 2009, a level that analysts consider cheap.
AB Capital Securities Inc. research head Jose L. Vistan said that property companies usually trades at 10 times earnings.
For starters, the company is unveiling four communities in Sucat (Vista Lakefrot), Alabang (Vista City), Sta. Rosa Laguna (Vista Sta. Elena), and Tagaytay (Vista Crosswinds) which it hopes will highlight the company’s vast land bank in the area.
In all properties, Vista Land’s brands Brittany, Crown Asia and Camella are present with projects like La Posada and Marina Heights in Vista Lakefront; Portofino and Monticelli in Vista City; Georgia, and La Residencia in Vista Sta. Elena; as well as Crosswinds in Vista Crosswinds.
"Normally we buy a small parcel that we can develop immediately and we expand as we go along depending on the demand. In the south we have big parcels, di lang siya nakikita as a big parcel because the brand is much stronger in the segmentation," said Serrano.
"This year what we want to do is highlight the master planned communities under Vista. There can be three brands there, and we have plans now to develop commercial component. That will be good because we will have some recurring income," she added.
The development of the leasing component is seen contributing about P1 billion in revenues when the commercial component is established.
Serrano said the decision to develop the commercial components of the properties was made after the residential side has been established. Vista Land has been developing these projects for nearly 20 years.
"What we want to do is take advantage of our existing development," she said.
The company has already identified two areas for its commercial component.
Vista Land vice president for Finance Ricardo Tan said of the four, the "over a hundred hectare" Vista City is sure to start its community development this year.
"The decision to promote the properties as a community will increase the company’s capital expenditures in the years to come, although the allocation for the year will remain unchanged," Tan said.
"Right now it’s still P10 billion but we are looking at the numbers again because in three years it might be a lot more. We might increase it a little bit," he said.
ATR Kim Eng research head Ricardo Puig whatever benefit Vista Land’s share price could derive from the new marketing effort has to reflect first on the company’s earnings since investors buy and sell stocks based on earnings prospects.
"Remember when people buy they compare the property with the same kind of property in other comparable brands. For name recall yes. But for its share price, it remains to be seen," he said.
"To help the company, it has first to push the product to bring earnings to the company and support the share price," he added.
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