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Vista Land plans fund-raising for capex

Posted on February 06, 2013 11:32:45 PM [ BusinessWorld Online ]
PROPERTY DEVELOPER Vista Land & Lifescapes, Inc. is likely to borrow or tap the equity market later this year to fund part of its 2013 capital expenditures of over P18 billion, even as bulk of this figure is expected to be bankrolled by internally generated cash, a senior company official said in a recent interview.
“It will be mostly internally generated funds,” Ricardo B. Tan, Jr., Vista Land chief financial officer and compliance officer, said on Thursday last week when asked about how the company will fund its budget this year.
In December last year, Vista Land said that its capital expenditure for 2013 is expected to exceed P18 billion, bigger than the P15-billion budget it set for 2012, amid expectations of robust demand for real estate.
Mr. Tan could not say how much Vista Land actually spent in 2012.
“But also, we will probably be raising (funds) either through the market or probably through debt. We’re looking at those,” Mr. Tan said, even as he declined to cite a specific amount and time table for the transaction.
Mr. Tan said a portion of the company’s internally raised cash would come from the P636.07 million in proceeds Vista Land raised from the recent sale of its entire treasury stock. Last month, Vista Land sold all of its 133.91 million treasury shares at P4.75 apiece, mostly to foreign investors, in a bid to boost the firm’s trading liquidity by providing more shares for the public.
Mr. Tan hinted at a “great” 2012 in terms of earnings.
“We haven’t disclosed our results, but I can say it was a great year,” he said without elaborating.
For 2012, Vista Land earlier said that it was targeting to hike its net income by 18.98% to P4.2 billion from P3.53 billion in 2011, and increase its revenues by 18.43% to P16 billion from P13.51 billion.
Vista Land grew its net income by 23.76% to P3.23 billion as of September last year from P2.61 billion in the same nine months in 2011, driven by robust sales of the firm’s flagship residential brand Camella Homes.
Vista Land had said in December last year that, for 2013, it would continue to pursue a three-tiered plan to sustain growth, namely: open projects in new cities and towns across the country, construct more condominiums in urban areas to tap demand from young urban professionals, and build of more commercial developments near or within Vista Land residential projects.
Shares of Vista Land lost five centavos or 0.94% to close at P5.28 apiece yesterday from P5.33 last Tuesday. -- Franz Jonathan G. de la Fuente

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