Villar-led property developer Vista Land and Lifescapes Inc. on Thursday said it raised P2 billion from the issuance of additional five-year corporate notes, which it will use to refinance the existing or maturing obligations of the group.
The corporate notes due 2027 carry a fixed interest rate of 7.2359 percent, the company said in its disclosure.
The notes were issued to Union Bank of the Philippines pursuant to the corporate notes facility agreement with Vista Land as issuer.
SB Capital Investment Corp. was picked as lead arranger and bookrunner, Security Bank Corp.-Trust and Asset Management Group as facility agent and registrar and Vista Land’s units Brittany Corp., Crown Asia Properties Inc., Camella Homes Inc., Communities Philippines Inc., Vista Residences Inc., and Vistamalls Inc. as subsidiary guarantors.
Vista Land reported a 12-percent increase in net income to P2.36 billion for the first quarter from P2.1 billion last year.
Revenue from real estate sales reached P4.83 billion for the period, down by 23 percent from P6.25 billion last year due 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-19 infection that slowed down construction activities.
The company uses the percentage of completion method of revenue recognition in which revenue is recognized depending on the stages of development of the properties.
Rental income increased by 29 percent to P2.59 billion for the period from P2 billion a year ago.
The increase was due 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 to P448 million in the first quarter from last year’s P327 million. The company attributed this to the 22-percent increase in income from mall administrative and processing fees to P352 million and the increase in parking fees to P25 million from just P1 million a year ago.