Villar’s VREIT profits surge 808% to P13.9 B

Vista REIT Inc., the real estate investment trust of billionaire Manuel B. Villar Jr.’s Vista Land and Lifescapes Inc., reported that its net income soared 808 percent to P13.89 billion in the first nine months of 2023 from P1.53 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its revenues increased 15 percent to P2.07 billion from P1.8 billion for the nine months ended Sept. 30, 2022.

VREIT said the growth was primarily attributable to the non-operation in Jan. 1 to March 15, 2022 and the transfer of the assets to the company in March 16, 2022.

Revenues were also boosted by the 10 percent improvement in rental income to P1.91 billion from P1.73 billion due to the increase in escalation rates. As of Sept. 30, 2023, the occupancy rate is at 97 percent.

Parking fees jumped by 297.3 percent to P30.1 million from P7.6 million primarily driven by the increase in numbers of vehicles parked in the malls.

VREIT's portfolio consists of 2 office buildings and 10 malls — ***VREIT’s portfolio consists of 2 office buildings and 10 malls***

Other operating income increased 130 percent from P56.7 million to P130.56 million due to the increase in administrative fees and other fees charged to tenants.

The surge in profits is due to fair value changes in investment properties which increased by 100 percent to P12.97 billion from nil for the first nine months of 2022 due to the recognition of the change on the appraisal value of the investment properties.

Straight line adjustments also increased by 100 percent to P642.59 million from nil last year due rental escalation of lease contracts recognized on a straight line basis for the year.

Interest income increased 23.5 percent from P0.64 million for the nine months ended Sept. 30, 2022 to P0.79 million for the same period this year as a result of interest earned from the increase in cash in banks of the company for the period.

VREIT’s portfolio with over 250,000 square meters of gross leasable area consists of 12 properties including two PEZA-registered office buildings located in BGC and Molino, and 10 retail malls with strong and stable anchor tenants such as publicly listed AllHome and AllDay.

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The article was originally published in Manila Bulletin and written by James A. Loyola.