March 20, 2017 – CRISP affirms AAA rating on Vista Land and Lifescapes based on the company’s sustained leadership in its market niche, strong financial performance, strong management team and sustainable operating model.
Sustained Leadership in the low-cost and affordable housing market. Vista Land and Lifescapes, Inc (VLL) has maintained its leadership position in the low-cost and affordable housing market segments.
Since 1977 when it commenced its operations, VLL has built an estimated 300,000 homes in 36 provinces, 98 municipalities and cities throughout the Philippines, including the Greater Metro Manila areas. VLL projects cover all income groups but maintains a primary focus on the low-cost and affordable housing segments through its flagship brands, Camella and Communities Philippines.
VLL’s sustained project launches in the last few years have focused in the low and affordable market segments that are mostly outside Metro Manila. VLL launched 124 projects over the last 3 years beginning in 2013 with a total project value of P93.1 billion by end of 2015. During the last 9 months of 2016, VLL launched 24 residential projects with a value of P17 billion.
To assure its future competitive position, VLL currently holds an expansive landbank that is comprised of approximately 2,093 hectares of VLL-owned raw land ready for development and about 326 hectares under joint venture agreement, as of September 2016. VLL’s landbank is near major roads and primary infrastructure.
Strong Financial Performance
Strong Revenue Growth. Over the last 3 years, VLL’s revenue has grown annually by 11.6% in 2014, and 13.1% in 2015. During the interim 9-month period in 2016, revenue growth is expected at 8%.
Strong Net Income and EBITDA Margins. VLL’s net income grew by 13.8% in 2014 and 14.3% in 2015. In 2016, the 9-month interim showed an 11% net income growth over the same period in 2015. EBITDA margins also grew impressively at around 35% in the last 3 years with 2016 expected to have finished at 39.5%
Strong management team and a successful operating model. VLL’s sustained growth indicate that its experienced and highly skilled management team can overcome the challenges of a very competitive property development industry.
Likewise, VLL is now benefiting from its successful operating model that enables it to replicate large-scale housing community projects. Its scalable, standardized processes and technologies allow VLL is to efficiently build and deliver high-quality houses and lot packages.
Outlook: Stable. CRISP believes that VLL’s leadership in the low-cost and affordable housing market segments will be sustained as the economy continues to grow and the demand for more housing, particularly in VLL’s market segment. CRISP is also confident that VLL’s strategic landbanking decisions and the synergistic value of its Star Mall assets will have favorable results to sustain its leadership in property development for the low-cost and affordable markets.