Vista Land & Lifescapes Inc. has earmarked a record P36.06 billion in capital expenditures for 2016 to finance construction of projects and land developments and acquisitions.
This year’s capital expenditures is 14.5 percent higher than the company’s actual spending of P31.49 billion in 2015.
Vista Land, owned by the family of former senator Manuel Villar Jr., said in a regulatory filing it was allotting P26.7 billion on construction, P6.3 billion on lot developments and P3 billion on land acquisitions.
“The company expects to fund its budgeted capital expenditures principally through the existing cash, cash from operations, as well as through borrowings,” Vista Land said. “The company’s capital expenditure plans are based on management’s estimates.”
“In addition, the company’s capital expenditure plans are subject to a number of variables, including possible cost overruns; construction/development delays; the receipt of critical government approvals; availability of financing on acceptable terms; changes in management’s views of the desirability of current plans; the identification of new projects and potential acquisitions; and macroeconomic factors such as the Philippines’ economic performance and interest rates,” Vista Land added.
Vista Land over the last five years years has increased capital spending in bid to maintain its position as the leading house and lot developer in the country.
Vista Land earlier said it would pursue the residential business as well as the operation of newly-acquired shopping mall unit, Starmalls Inc.
Vista Land expects Starmalls this year to expand its leasable area to 850,000 square meters from the current 509,000 sq. m. The increase will come from expansions of existing shopping malls and the completion of new centers.
The expansion of the mall business will enable Starmalls to account for 25 percent of Vista Land’s net income in the next two years from the current contribution of 10 percent.
Vista Land has a land bank of 2,353.8 hectares nationwide, while Starmalls has 46.9 hectares of raw land as of December 2015.
Vista Land last year posted a 14-percent increase in net income to P7.2 billion from a year ago on higher sales from residential and rental businesses.
Consolidated revenues increased 12 percent to P28.7 billion as real estate sales jumped 12 percent to P24.5 billion, while rental income surged 44 percent to P2.77 billion from P1.9 billion in 2014.
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