Las Pinas—(PHStocks)—Starmalls Inc. (PSE: STR), the commercial arm of Vista Land & Lifescapes Inc. (PSE: VLL), sustained rapid double digit growth for its results of operations for the first nine months of the year (9M 2016). Rental revenues were at PhP3 billion or a 71% increase from same period last year’s PhP1.7 billion. EBITDA during the period grew 48% to PhP2.1 billion from PhP1.4 billion in the same period last year. Net income likewise posted a 53% growth to P1.1 billion from PhP0.7 billion last year.
“We remain optimistic with the retail industry’s outlook for the rest of the year, as we continue to see sustained growth in the disposable income of Filipinos due to sound Philippine macroeconomic fundamentals,” said Chairman Manuel B. Villar Jr. “In addition, we will be taking advantage of the synergies that developed as a result of our integration into Vista Land.”
For the nine months of 2016, the company’s total consolidated assets amounted to PhP34.5 billion. Capital expenditures for the period totaled to PhP4.8 billion.
As of September 30, 2016, Starmalls already has 17 commercial assets in its portfolio and is still continuing to expand its leasable space. According to Jerry Navarrete, president of the company, they are ramping up Starmalls’ expansion program and will deliver additional leasable space in the coming years as they develop their existing 46.9 hectares of commercial land bank and will be taking advantage of Vista Land’s over 600 hectares of land across the country that are suitable for commercial development.
“The Company’s growth rate was rapid as the additional commercial assets we opened during the year started contributing to our financial performance and added to the increased rental revenues from our existing malls brought about by favorable rental reversions and increased occupancy,” Navarrete added.
Starmalls is a major developer, owner and operator of retail malls that target mass market retail consumers in the Philippines and is an early mover in this market segment, focusing on locating in densely populated areas underserved by similar retail malls and within close proximity to transport hubs and key infrastructure. It also develops and operates business process outsourcing commercial centers.