STARMALLS Inc., the commercial arm of Villar-led Vista Land & Lifescapes Inc., said its net income grew 34 percent to P1.5 billion for the nine months of the year from last year’s P1.13 billion, while sustaining double-digit growth for its results of operations.
Revenues were at P4.1 billion, or a 29-percent increase from same period last year at P3.19 billion.
“We remain bullish on the retail industry’s outlook for the rest of the year, as we see continued growth in the disposable income of Filipinos due to sound Philippine macroeconomic fundamentals, sustained overseas Filipino remittance growth and the BPO [business-process outsourcing] sector contribution,” company chairman Manuel B. Villar Jr. said.
“In addition, we are now taking advantage of the synergies that have developed as a result of our integration into Vista Land. One of which is the creation of niche markets, as we are putting up malls within or near our existing residential developments, taking advantage of the natural catchment area within those lived-in communities,” Villar added.
As of end-September, Starmalls and Vista Land had a cumulative of over 1 million square meters (sq m) of gross floor area in its commercial-assets portfolio and is still continuing to expand its leasable space targeting to reach 1.3 million sq m of gross floor area by end-2018.
The company said it is ramping up its expansion program and will deliver additional leasable space in the coming years as they develop their existing commercial land bank and will also be looking at Vista Land’s over 600 hectares of land across the country that are suitable for commercial development.
“The company’s growth rate was robust as our expansion programs are already contributing to our financial performance in addition to the increased rental revenues from our existing malls brought about by favorable rental reversions and increased occupancy,” the company said. “We are poised to have another banner year this 2017 given our 9-month financial performance.”
Starmalls is a major developer, owner and operator of shopping malls that target mass market retail consumers in the Philippines and is an early mover in this market segment.
It also develops and operates business process outsourcing commercial centers.