Three and a half months from Asset Injection, VREIT nets P802.7 million; declares 1st dividend
VistaREIT, Inc. (“VREIT”), the flagship mall and office REIT of integrated property developer Vista Land & Lifescapes, Inc. (VLL), recorded a net income of P802.7 million for the period ended June 30, 2022. Since the injection of the 10 community malls andtwo PEZA-registered office buildings of the Company, rental revenues were at P934 million while EBITDA was at P850 million for the period. The company’s record performance covers three and a half months of operations since the assets were transferred to the Company on March 16, 2022.
“We are pleased with the strong performance of our 12 commercial assets – the majority of which are community-based malls – as we take advantage of the so-called ‘revenge retail‘,” said Manuel Paolo A. Villar, President of VREIT. “VREIT is poised to hit its target for the year,” he added. “Footfall has been improving and our system-wide occupancy as of June 30,2022 stood at 97%. We remain optimistic for the remainder of the year as the economy continues to open up and businesses are now able to navigate through this pandemic.”
VREIT’s total assets stood at P38 billion as of June 30,2022 and has no interest-bearing debt on its books.
VREIT is anchoring its solid expansion program on the robust, geographically diverse pipeline of the profitable assets of VLL. VLL’s commercial assets are composed of 31 malls, seven office buildings, and 69 commercial centers with a combined Gross Floor Area (GFA) of 1.6 billion sqm. VREIT assets account for over 20 percent of the total VLL’s GFA. In addition, VLL has about 3,000 hectares of raw land and recently launched Vista Estates, which will serve as potential locations for future commercial developments.
The Company sees as a robust foundation its synergy with Villar Group’s retail ecosystem given that the majority of its assets are community-based malls. Community based malls tend to deliver despite the challenges brought about by the COVID-19 pandemic. The performance of these community-based malls can be attributed to the strategic location and the tenant mix focused on providing essential items and services during the pandemic. VRE IT’s synergy with the Villar group’s growing world class retail ecosystem positions the Company to take advantage of the post-pandemic economic and retail recovery.
The company also declared its first dividend amounting to P157.5 million or P0.0210 per share for shareholders of record as of 30 August 2022 to be paid on 20 September 2022. The dividend represents 100% of the distributable income for the two-month period ending June 30, 2022. The Company was listed on June 15,2022.