LasPinas—(PHStocks)—Starmalls Inc. (PSE: STR), the commercial arm of Vista Land & Lifescapes Inc. (PSE: VLL), delivered double digit growth in rental revenues, EBITDA and net income for the first half of the year. Rental income stood at PhP2.0 billion, 73% higher from previous year’s PhP1.1 billion.
EBITDA during the first half of the year grew by 58% to PhP1.4 billion from PhP0.9 billion in the same period last year. Likewise, net income grew by 71% to PhP725 million for the first half of the year from PhP424 million a year ago.
“We are positive with the retail industry’s outlook for the rest of the year, as we are well-positioned to benefit from the favorable Philippine demographic, economic and development trends including the rising GDP per capita, growing OF remittances and BPO sector contribution, said Chairman Manuel B. Villar. Jr. “With the integration of our Company into Vista Land, the complementary symbiotic relationship and synergies of commercial developments surrounded by residential communities will enable us to achieve higher retail rental rates and higher selling prices, increased sales velocity for the Vista Land residential developments, all while maintaining lower land acquisition and infrastructure costs,” he added.
For the first half of 2016, the Company’s total consolidated assets amounted to PhP33.4 billion. Capital expenditures for the period totaled to PhP3.6 billion.As of June 30, 2016, Starmalls currently has 14 retail malls and three BPO commercial centers in its portfolio with over 731 thousand of gross floor area and 46.9 hectares of commercial landbank well suited for the development of mass market retail malls and BPO facilities.
“We remain very bullish about the prospects of our existing portfolio with significant room for further growth expected from them over the coming years and the Company can also take advantage of Vista’s over 600 hectares of land across the country suitable for commercial development,” Starmalls President Jerry M. Navarette said. “We are ramping up our expansion program this year and the redevelopment of the existing malls is in the pipeline,” he 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.