Vista Land & Lifescapes, Inc., the country’s biggest home builder, has raised P2 billion from the issuance of additional corporate notes at a fixed interest of 7.2359 percent per annum.
In a disclosure to the Philippine Stock Exchange, the firm said the proceeds of the additional notes will be used to refinance existing or maturing obligations of the Group and for the other general corporate purposes.
The additional notes were issued to Union Bank of the Philippines pursuant to the Corporate Notes Facility Agreement by and among Vista Land as Issuer, SB Capital Investment Corporation as Lead Arranger and Bookrunner, and Security Bank Corporation – Trust and Asset Management Group as Facility Agent and Registrar.
VLL’s subsidiaries namely Brittany Corporation, Crown Asia Properties, Inc., Camella Homes, Inc., Communities Philippines, Inc., Vista Residences, Inc., and STR are also included as Subsidiary Guarantors.
Vista Land reported a 12 percent improvement in net income to P2.36 billion for first quarter of 2022 from P2.10 billion in the same period last year.
The Company recorded revenue from real estate sales of P4.83 billion in the first quarter of this year, a decrease of 23 percent from P6.25 billion in the same period of 2021.
This was primarily attributable to the decrease in the overall completion rate of sold inventories of all its business units as a result of the surge in the Covid virus that slowed down construction activities in certain areas especially in the provincial area.
The Company uses the Percentage of Completion method of revenue recognition where revenue is recognized in reference to the stages of development of the properties.
Rental income increased by 29 percent from P2 billion in the first quarter of 2021 to P2.59 billion in the same period this year.
The increase was primarily attributable to higher occupancy and the increase in rates for the period including the upside from the higher sales of variable rental based tenants.
Income from parking, hotel, forfeitures, mall administrative and processing fees and others increased by 37 percent from P327 million for the three months of 2021 to P448 million for same period in 2022.
The increase was primarily attributable to the increase of 22 percent from income from mall administrative and processing fees to P352 million for and the significant increase in parking fees to P25 million from just P1 million in the same period last year.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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