Vista Land gets ‘AAA’ credit rating from CRISP

Details

 

Category: Top News

19 Mar 2014

 

Written by VG Cabuag

Property developer Vista Land & Lifescapes Inc. has received the highest credit rating from Credit Rating and Investors Services Philippines Inc. (CRISP) with “AAA” issuer rating with a stable outlook.

CRISP said the Villar-controlled company currently leads in the low-cost and affordable-housing market, and lauded it for its “excellent financial performance, strong management team and a successful operating model.”

Vista Land leads all property developers in the country in the low-cost and affordable- housing market segments.  The company has built more than 250,000 houses in 34 provinces, 73 cities and towns throughout the country.

“[Vista Land] has an operating model that can successfully replicate large-scale housing-community projects in its large land-banked properties widely spread throughout the country,” the ratings firm said.

It also cited Vista Land’s “excellent financial performance” in the last five years, in which it recorded a 22-percent average net-income growth. 

During that five-year period, Vista Land’s earnings before interest, depreciation and amortization margins averaged 36 percent, while its gross margins averaged 51 percent.

Vista Land reported a 15-percent increase in its net income last year as a result of its double-digit growth in sales after it completed and turned over more of its projects to its owners.

The company said in its report that its net income for the whole of 2013 reached P5.06 billion; the year before, it registered P4.38 billion in profits. Revenues from real-estate sales grew to P20.02 billion, a 23-percent increase from the previous year’s due to the increase in its overall completion rate of sold inventories, mainly of its horizontal developments, led by Communities Philippines and Crown Asia and high-rise developer Vista Residences.  The company uses a percentage of completion method in which it will recognize revenues according to the stages of development, of the pieces of property.  The real-estate revenue of Communities Philippines increased by 59 percent to P9.35 billion from the previous year’s P5.87 billion.  “This increase was principally attributable to the increase in the number of homes outside Mega Manila completed or under construction in the low-cost and affordable housing segment,” the company said. For Project Inquiry contact Vistaland at 09173236123.