Earnings call transcript: Vista Land Q4 2024 sees 5% revenue growth

Vista Land and Lifescapes Inc. reported its fourth-quarter 2024 earnings, highlighting a 5% year-over-year increase in total revenues, reaching PHP 37 billion. The company’s core net income climbed by 11% to PHP 9.4 billion. Despite these gains, the stock experienced a slight decline, closing at PHP 1.61, a 1.23% drop following the earnings release. According to InvestingPro data, the company maintains an impressive 80.7% gross profit margin and has consistently paid dividends for 17 consecutive years.

Key Takeaways

• Vista Land’s total revenues grew by 5% YoY to PHP 37 billion.
• Core net income increased by 11% to PHP 9.4 billion.
• The stock price fell by 1.23% post-earnings.
• Real estate revenue saw a 9% increase.
• Interest and financing charges rose by 73%.

Company Performance

Vista Land demonstrated solid performance in the fourth quarter of 2024, with a 5% increase in total revenues. This growth was driven by a 9% rise in real estate revenue and a 4% increase in rent net income. The company’s strategic focus on diversifying its brand portfolio and expanding its project launches contributed to these positive results.

Financial Highlights

• Total Revenues: PHP 37 billion (5% YoY growth)
• Gross Profit: PHP 11.8 billion (71% margin)
• EBITDA: PHP 22.8 billion (62% margin)
• Core Net Income: PHP 9.4 billion (11% increase)
• Reservation Sales: PHP 79.1 billion (10% increase)

Market Reaction

Following the earnings announcement, Vista Land’s stock saw a minor decline of 1.23%, closing at PHP 1.61. This movement is within the company’s 52-week range of PHP 1.41 to PHP 1.85. The market’s reaction may reflect concerns over increased interest and financing charges, which rose by 73% to PHP 9.8 billion. InvestingPro analysis suggests the stock is currently undervalued, trading at a P/E ratio of just 2.05x and offering a substantial dividend yield of 7.09%. For deeper insights into Vista Land’s valuation metrics and 8 additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.

Outlook & Guidance

Vista Land is focusing on expanding its horizontal housing in provincial areas, targeting the affordable housing market. The company anticipates that potential interest rate cuts could enhance housing affordability, which may boost future sales. Vista Land maintains its dividend policy of distributing approximately 20% of the prior year’s net income.

Executive Commentary

• "We’re going back to our base core business, which is horizontal housing," said Brian Edang, CFO, emphasizing the company’s strategic focus.
• "Confidence in condo market has been a little bit weaker," Edang noted, indicating a shift in market dynamics.
• "Most of our buyers are still the overseas Filipinos," Edang highlighted, underscoring the importance of this customer segment.

Risks and Challenges

• Rising interest and financing charges could impact profitability.
• Shifting market confidence in the condominium sector may affect sales.
• Economic conditions and potential interest rate changes could influence housing affordability.
• The company’s reliance on overseas Filipino buyers presents a concentration risk.
• Execution risks associated with expanding into new housing markets.

Vista Land’s Q4 2024 performance shows resilience and strategic focus, despite market challenges. The company’s emphasis on horizontal housing and potential interest rate cuts could shape its future trajectory positively. With a healthy current ratio of 1.74 and strong financial metrics, InvestingPro’s Financial Health Score rates Vista Land as "GOOD," suggesting solid fundamentals supporting its growth strategy. Access the full Pro Research Report for comprehensive analysis of Vista Land’s market position and growth potential.

Full transcript - Vista Land and Lifescapes Inc (VLL) Q4 2024:

Conference Moderator, VistaLand and Lifescape: Good afternoon, ladies and gentlemen. Welcome to VistaLand and Lifescape’s full year twenty twenty four analyst briefing. We hope that you and your families are all safe. Thank you for joining us this afternoon. All questions will be entertained immediately after the presentation.

Please note that this conference call is being recorded. I will now turn you over to Mr. Brian Edang, CFO and Head of IR for the presentation.

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Good afternoon, everyone, and we are delighted that you’re able to join us today. The presentation will cover the audited financial results and the business updates for the year ended 12/31/2024. Here are some highlights of our performance in 2024. We recorded total revenues of PHP 37,000,000,000. Gross profit was at PHP 11,800,000,000.0 with a gross profit margin of 71%.

EBITDA is at PHP 22,800,000,000.0 with an EBITDA margin of 62%. Core net income actually increased at least reported at $9,400,000,000 Our reservation sales was at $79,100,000,000 Total assets for the year ended with $380,500,000,000 with a total equity of 137,300,000,000.0 and ended the year with a net debt of equity of 0.86x. We’ll give you more details of this in the next few slides. The details of our income statement as follows. So we recorded a revenue total revenues of BRL 37,000,000,000, reflecting a 5% year on year growth.

And these are due to the following: First, real estate revenue registered a growth of 9% to PHP 16,600,000,000.0 from PHP 15,200,000,000.0 same period last year. And this is primarily to the increase in the overall completion rate of the sold inventories of the company’s business units. And in terms of our unbooked revenues at the December, it was at around 83,700,000,000.0 versus PHP 78,200,000,000.0 last year. Rent net income registered PHP 16,600,000,000.0 from PHP 16,000,000,000 last year. This is up 4%, and the increase was primarily due to the increase in the rates for the year.

Income from parking, hotel, mall administrative and processing fees and others decreased by 20% from CHF 2,100,000,000.0 for the full year 2023 to TWD 1,700,000,000.0 for 2024. The decrease was primarily attributable to the significant decrease in the 4 figures for the year. There were no significant cancellations for the year. Next, interest income increased by 12% from 1,800,000,000.0 for the year ended 12/31/2023 to PHP 2,000,000,000 at the end of twenty twenty four. The increase was primarily attributable to the higher interest received from the investment of amortized cost, which clocked in an increase of 46% to 1,750,000,000.00, which was offset by the significant decrease in our interest income from installment contracts receivable, which posted a decrease of 54% to $277,000,000 as majority of our buyers are actually getting mortgage financing.

Let’s go to our gross profit. It increased 30% to 11,800,000.0 with the gross margin improving to 71%. The increase was primarily due to the increase in the sales for the period, coupled with a 20% decrease in cost of sales due to as we took advantage of the various cost saving initiatives for the year. Operating expenses actually decreased by 8% from PHP 11,600,000,000.0 to PHP 10,700,000,000.0 for 2024 and this was due to the decreases in the provision for impairment losses and repairs and maintenance for the year. As a result, EBITDA posted an 11% increase to 20.6 from TWD 20,600,000,000.0 to TWD 22,800,000,000.0 for the year ended 2024, and these are due primarily to the gross margin improvement and the decrease in operating expenses.

Interest and other financing charges increased significantly by 73% from PHP 5,700,000,000.0 for full year 2023 to PHP 9,800,000,000.0 for full year 2024. The increase was primarily attributable to the lower capitalization for the year as part of the full adoption of the PAS 23 on borrowing costs. Overall, core net income ended full year 2024 with an 11% increase from PHP 9,400,000,000.0 up to PHP 9,400,000,000.0 rather, from PHP 8,500,000,000.0 in 2023. Moving on to our real time sales. Reservation sales continued to trend higher.

If you look at this, full year 2023, it had an increase of 10% to 79,000,000,000. The fourth quarter actually locked in around 9% increase to PHP 20,600,000,000.0. In terms of our real estate revenue contribution, Camellia brand accounts for 57%. This is a decrease from the 69% it contributed in 2023. If you look at it, most of the increases comes from the mid to high end brands, Crown Asia and Brittany.

Brittany now contributes 16% combined compared to the 10% last year as well as the Vista Residence Test for our subsidiary vertical development, which accounts for 27% of total in full year 2023 as far as our 2024 versus 21% in 2023. Onto our leasing business. As of the December, we still have around 1,600,000 square meters of gross to our area. That’s equivalent to a hundred and eight commercial assets across the country, comprising 42 malls, 59 commercial centers, and seven office buildings. If you look at the breakdown, 87% of our GFA, our retail malls, and 13% office.

Our our retail mall actually is taking advantage of being located near our existing communities. 76% of our total GFA is located near Vista communities. Anchored tenants account to around 75% of GFA. Seventy percent of our GFA are affiliated. And and what’s new for the year is that we actually open to more third party tenants, and we get sign ups and openings of new tenants third party tenants in some of our malls last year.

On the next slide, these are the quarterly details of our leasing business. So operating GFA stood at 100%, system wide occupancy at 87% with our mall at 86% and office at 92%. Moving on to the balance sheet. So the company has a cash and cash investment decreased by 9% to 45,000,000,000 from PHP 49,900,000,000.0 last year, and this was due to the use of cash for debt servicing and investing activities. Total receivables went up to 47% to 122,000,000,000 due primarily to the adoption of IFRS 15, higher reported sales, increase in other receivables and accrued rental income for the year.

Real estate inventories decreased by 9% to 58,200,000,000, and this was due primarily to the launches for the year. Investment properties grew by 8% to 135,000,000,000. In Part D, this is due with the capitalized interest for the year. With the adoption of the AS 23, borrowing costs are now allowed only to capitalize on investment properties as well as residential properties that are not yet launched. This brought our total assets to $380,000,000,000 or up 11%.

Interest bearing loans slightly increased by 1% to TWD 163,000,000,000. And because last year, the company just refinanced most of its debt maturities for the year. Total liabilities increased by 16% to BRL 243,200,000,000.0 due primarily to the increase in the accounts and other premium payables as well as different tax liabilities for the year. While equity went up 3% to 137,300,000,000.0 due to the net income recorded for the period. At the December 2024, our debt to equity stood at 1.19x, lower than 1.21x December 2023, while our net debt to equity is at 0.86x, slightly higher than December 2024.

We have a diverse funding sources. As you can see on the left slide on left hand side of the slide, majority of our debt are actually long term in nature as shown in our maturity profile graphs. Moving on to our land bank, It stood at around 2,690.5 hectares at the December, of which 30% are the Mega Manila area and 70% are provinces. Our land bank represents at least twenty seven to thirty years of development. If we don’t acquire more land, then we’ll be launching more vertical projects moving forward.

We’re present in 147 cities in municipalities, 49 provinces across the country. Please note that the almost our land bank is actually distinct and separate from the other lands owned by group. Slide 12, we have launched 25 projects worth 40,800,000,000.0 last year, comprised of two horizontal and 23 vertical projects. To date, we have a total of 30 Vista Estate projects launched. On CapEx, we set our CapEx of 2024 to PHP 30,000,000,000, majority are for construction and land development.

And for the full year 2024, we have actually spent PHP 28,900,000,000.0 or 96% of the cash flow debt. And most of it is for construction and land development, while land acquisition still remains muted as the company will be using existing land and reserve lands for its launches. Slide 14, just an update on May 2, next slide. We actually VLL International obtained a hundred $50,000,000 syndicated loan facility, a rate of 6.4% from various banks, namely Sumitomo, Kasa United Bank, Changwa Commercial Bank, First Commercial Bank, Mega International Commercial Bank, and Hoobank. They use the proceeds for this hundred and 50,000,000 for refinancing.

That’s it for the present presentation proper. We’re okay for the question and answer. Thank you very much.

Conference Moderator, VistaLand and Lifescape: How will the debt maturing this year be financed?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: For the year, we’re looking at around $35,000,000,000 principal mature fees. We were we will be refinancing all of that. So far, we acquired BRL 150,000,000 from the Sumitomo Bank I mean, from the dollar syndication as part of that. And the rest, we will be working on it.

Conference Moderator, VistaLand and Lifescape: Could you share the breakdown of the accounts receivable for both 2024 and 2023? How much of AR is related to leasing receivables, and how much is related to property development?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Around 60,000,000,000 are actually from the lead the receivables from contracts receivable from residential. There are some other receivables and leasing, I think, is around 40,000,000,000.

Conference Moderator, VistaLand and Lifescape: What are Vistalance plans in relation to the payment of its maturities this year?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We usually look at the maturities. So we have maturities such as retail bond, bilateral and corporate notes. So most likely, we’ll be refinancing using the same instrument. But then we already have other sources like the dollar funding or the dollar syndicated loan that we did. So we’ll work on that also.

Conference Moderator, VistaLand and Lifescape: Where do you attribute the margin expansion? Are these expected to be the norm moving forward?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: I think the norm will be around 65%, sixty six %. This really came from cost initiatives that’s the cleanup of some of the estimated land development costs of completed projects that were reversed. If we remove that, for example, this last year, 2024, the normalized margin would have been 65%. So that’s, I think, would be the, would I say, the sustainable gross margin because this really came from the appreciation of that.

Conference Moderator, VistaLand and Lifescape: What is the total net income for the year 2024?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: ’20 ’20 ’4, ’9 point ’4 billion.

Conference Moderator, VistaLand and Lifescape: When will you have the first quarter twenty five earnings briefing?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We’re looking at next week to do the briefing.

Conference Moderator, VistaLand and Lifescape: There was a substantial decrease in parking and other fees. Would you attribute this to lower foot traffic?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Actually, the the the name says parking, administrate, no administrative fees, as well as miscellaneous income. Majority of the decrease came from forfeitures where, you know, where we where where we have if we have cancellation, we have we get, like, whatever the payment of the buyers are. Actually, parking increased, all the other mall related collaterals increased. The one that decrease in the miscellaneous income line item or the parking miscellaneous administrative is the four features.

Conference Moderator, VistaLand and Lifescape: Do you have any plans for buybacks as of USD bonds?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We are looking at that. So the company is evaluating on the buyback of the US dollar bonds.

Conference Moderator, VistaLand and Lifescape: Any material risk given higher refinancing costs?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Actually, if you notice, this dollar syndication, we got it at 6.4%. So, I mean, we just have to come up you know, we we just have to see what’s the potential for, like, lowering cost or opportunities whenever we do our maturities.

Conference Moderator, VistaLand and Lifescape: What was the rental income without including rental escalation?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Let me get back to you on that.

Conference Moderator, VistaLand and Lifescape: Could you provide more color why accounts receivable increased?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: The significant increase is the adoption of PFRS 15 or the significant financing component where most of our if you look at it, our construction is actually faster compared to the payment cycle of the buyers. So when we adopted the IFRS 15 and the recognized accounts receivable I mean, significantly nothing component, and it was credited to the retained earnings beginning balance. That’s around 10,000,000,000.

Conference Moderator, VistaLand and Lifescape: Can you share your CapEx plans going forward for the next few years?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: CapEx plans, we’ll disclose it next week for the first quarter briefing. So it’s sufficient.

Conference Moderator, VistaLand and Lifescape: Could you comment on the annual results being delayed twice?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, actually, the reason why we we delayed the result is more of the as mentioned, we have a new accounting partner assigned to us because the original partner was already set on its on its seven years. So the the new team has to, you know, do all the you know, redo all most of the procedures, and then we release it now.

Conference Moderator, VistaLand and Lifescape: Should there be trades from SBLs on local banks, what other significant financing channels are you looking at?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, actually, that’s why we actually always do our diversified funding sources, and we just got a new diversified funding sources, which is the dollar syndication. Because we wanna make sure that we have other options in case of you know, there are some limitations in some some sources that we have.

Conference Moderator, VistaLand and Lifescape: Where is the biggest area for your land bank?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: If you look at the map a while ago, actually, the majority are still mega Manila. But these are outside the, you know, the areas where there’s, like, oversupply in condominiums. And majority of our land is really suitable for horizontal development in especially in the provincial areas.

Conference Moderator, VistaLand and Lifescape: Equity just only increased by 3% around 4,000,000,000. 4 billion increased off, but the net income is around 9,000,000,000. What is the breakdown and the difference?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: I think that also is there’s an impact on the beginning retained earnings because we booked the adjustment pertaining to the PFRS 15, which is an account changing accounting policy. So we will show I mean, the financial statement will show you the go forward of retained earnings, and you’ll see the impact of the adoption of the accounting the new accounting standard.

Conference Moderator, VistaLand and Lifescape: Will the receivables be reversed in first quarter, and how will this evolve going forward?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We will be able to collect some, especially on the leasing side. There will be some timing difference, especially in the AR tenant portion. The accrued receivables, which has a significant increase, will be actually reversed over time. So as mentioned, this pertains to future escalation, which has been straight line. So the moment we’re actually on the second half of the, you know, contract, for example, most of our contracts are fifteen years.

If we’re already in the eight year to fifteen years, you’ll see a good a good rent receivables to decrease because escalation already kicks in. So therefore, the billed receivables will be higher in the cash collected.

Conference Moderator, VistaLand and Lifescape: Could you share your unsold inventory levels? How much is RFOs and how much is under construction?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We have minimal RFOs. If you look at our inventory and then actually a decrease. So it’s BRL $958,000,000,000 now. If you look at it, majority of our inventories are subdivided lots. So there’s no housing component in that.

We have around BRL 11,000,000,000 in condominium units and then around BRL 3,000,000,000 in housing units because the way we do it is we resell first before we actually build. So that’s why we don’t build up inventories.

Conference Moderator, VistaLand and Lifescape: On potential buyback of USD bonds, any timeline for decision making? Also, you let us know more details on local funding? With 39% of debt short term in nature, how much of this would be lines expected to be rolled over?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, we’re we’re in discussions with the local banks. And, course, we we also look at other potential sources for funding to actually roll over. When it comes to the time line on the buy and back of the receivable of the dollar bonds, we’re actually actively looking at it, and we’ll see the decision within the month of the month of June.

Conference Moderator, VistaLand and Lifescape: Can you talk a bit more about your loan book? What is the NPL in 2024?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Actually, if you look at it, our receivables from buyers is around 60,000,000,000. There is no allowance for doubtful account or impairment losses record record recorded for that because when we did our when the auditor did the evaluation of the potential impairment, the value of the property is still higher compared to the value of the receivables. So there’s we don’t see a significant, like, levels of NPLs for that one because at the end of the day, we think we were able to collect. And if in case they cancel, we can resell it at a better price. So that’s why there’s no impairment losses for that one.

Conference Moderator, VistaLand and Lifescape: What is the long term outlook of the company in property sector?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, we’re for this year, especially with the oversupply in Colombia, Metro Manila or certain areas, specifically Bay Area, Pasig and Gatin City, most of our launches will be in the provincial. And we’re going back to our base core business, which is horizontal housing, which is our core strength. So you’ll see as more of our launches will be more horizontal moving forward and provincial.

Conference Moderator, VistaLand and Lifescape: Can you comment on the market for affordable housing where you have a large exposure?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We think that the affordable market are actually gaining traction, especially with potential rate cuts moving forward. Inflation plugged in 1.4% last month. So actually, there is a room to cut more rates moving forward. And I think that will increase affordability for our potential buyers.

Conference Moderator, VistaLand and Lifescape: Much is current booked sales? What are the presales targets for 2025 versus 2024?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: And booked revenues is around 83,000,000,000 as of end twenty twenty four. Presales, we haven’t set the target yet, but at least the level of 2024.

Conference Moderator, VistaLand and Lifescape: Will the proceeds from USD syndication be used for the buyback, or will you raise a separate loan or cash balance?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, I mean, it’s a you know, it can be either. I mean, we we will look at, you know, the deployment of our funds and see if we can use some of that to better.

Conference Moderator, VistaLand and Lifescape: How had the sales take up on your SE been so been so far for year to date? Can you give some guidance for twenty twenty four twenty twenty five?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We’ll give more guidance for next week, but I’ve seen that we’re seeing flattish sales last first quarter. We haven’t seen the exact number yet. I mean, confidence was impacted. And I think in the next week, we’ll be able to give more color. Yeah.

Conference Moderator, VistaLand and Lifescape: Much in terms of sales value is unsold inventory as of end twenty twenty four?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We have around in terms of cost, it’s around BRL 11,000,000,000 for condominium units. So time stood at around BRL 22,000,000,000.

Conference Moderator, VistaLand and Lifescape: How much of peso loans have come year to date? And how much of that has been refinanced?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: For the year, we’re looking at around 35,000,000,000 in maturities, and they come in long June. We’ll come in around 13,000,000,000 and around 17,000,000,000 in book notes in in in December. So the difference would have been already been paid off.

Conference Moderator, VistaLand and Lifescape: Does the company consider share buybacks?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: That’s always the plan. I mean, the company is, I mean, is always evaluating, and we’ll see if we will be able to do some of the buybacks for the stock market.

Conference Moderator, VistaLand and Lifescape: Will the receivables come down due to better collection or due to part reversal of effect of TFRS?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Well, it’s combination. For the first quarter, we’ll see that, and we’ll update you on where the receivables will be by the first quarter, and that’s gonna be next week.

Conference Moderator, VistaLand and Lifescape: Your question coming in from Carl C. Carl, please unmute your line. Well, we have to successfully raise dollar syndicated loan. Why not raise as a domestic loans as well?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We’re looking at this. I mean, at the end of the day, we’re looking all potential. I mean, we that’s why we diversify our funding sources. So we’re looking we’re we’re talking to banks. We’re not talking to some you know, to do some retail bonds.

So, you know, all potential sources of funding we’re looking at.

Conference Moderator, VistaLand and Lifescape: Question coming in from Carl. Question coming in from Carl. Carl, please unmute.

Carl, Analyst: Good afternoon. Let me just check if you can hear me. Hello? Yes. Yes.

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Yes. Great.

Carl, Analyst: Yeah. I I’d like to get a flavor of demand. So you mentioned, for instance, that you plan to do more horizontal and provincial projects. I I recall at some point last year, maybe it was the year before, there was an intention to do, let’s say, more leisure or like beach or mountain in my head, was beach or mountain higher end projects. What’s your view on that now?

And related to that, I believe you said you sold more of Brittany in South Asia. How’s the demand for that type of product? And is that, in your opinion, stronger than, let’s say, affordable housing?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Right now, I mean, if you I mean, that was intentional last year. We were pushing for vertical quarters, and it’s not actually in the it’s actually across The Philippines. Now we we’re still gonna launch, like, the big, you know, leisure projects. We still have projects we have still land in, like, Palau and Chargal, Onion. I mean we’re going to launch that still.

But majority of our launches will be our horizontal projects in the provincial. I mean I think confidence in condo market has been a little bit weaker. So that’s why we’re looking at the other side with it, which is the horizontal. But Brittany Crown Asia will still opportunistically launch. We’ve seen that market a little bit like they’re actually more resilient.

And that’s why we’ve seen, like, contribution from Britain and Crown Asia increased by 6% compared to last year, so from 10% to about 15%. I mean, also on the vertical side, we still have to be launching projects, especially in areas where we see potential. I mean, we’re not in the areas where there’s oversupply, so we’ll see it. But the core business or the majority of our launches will still be in the affordable, provincial and horizontal development. Let me just check

Carl, Analyst: if I understand. Did did you mean that the Brittany and Crown Asia sales, were they vertical projects or horizontal projects? Combination. I mean,

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: there there was a combination of vertical and horizontal.

Carl, Analyst: Got it. And with respect to demand from OFWs, let’s say, as a percentage of your sales, do they comprise the same amount as before? Let’s say, five to 60%, or is it come up up or down?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Still the same. It’s around 60%. We’ll we’ll see. I mean, so far I mean, at the end of the day, most most of our, you know, buyers are still the overseas Filipinos. Got it.

Carl, Analyst: And and to clarify, that’s true even for Brittany and Crown Asia. It’s just a richer

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: OFW clientele. Or over this file, Filipinos from the The US, for example, or repair, said the profile will be different compared to the Carmelia and Filipinos.

Carl, Analyst: But but still OFW.

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: That’s correct.

Carl, Analyst: Okay. Thank you. Those are all of my questions.

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Thanks, Karen.

Conference Moderator, VistaLand and Lifescape: For Chris Walker debt repayment, did you obtain loan to refinance, or did you use cash to

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: It was combination. So we we have some loans in the end, some cash pay for the first quarter repayment.

Conference Moderator, VistaLand and Lifescape: Does the company have dividend policy? Example is percentage of income for the creation of dividends.

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: We do. We actually declared dividends in the fourth quarter of every year ever since we listed, and it’s around at least 20 of prior year’s net income. We don’t see additional questions in the Q and A box or in the chat box. I’m here.

Conference Moderator, VistaLand and Lifescape: Regarding the previous allegations of unpaid property taxes, is there any investigation still ongoing?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Just to clarify, there’s no investigation. Actually, it was a part of it’s political in nature. The name that that particular unpaid property taxes pertain to our hotel in Las Finas, where the government of Las Finas had an assessment at around a hundred 50,000,000 real property tax where the basis were actually wrong. And then when we told them that the basis was actually wrong, they actually agreed to our basis, which should have been just 50,000,000. So we’re just we actually settled this agreement.

So there’s no more there’s there’s no investigation in the first place. I mean, they’re just saying that we haven’t paid that they actually are just waiting for them to actually finalize the and agree with us on the the correct amount and which are we actually paid them in.

Conference Moderator, VistaLand and Lifescape: So the change of emphasis from condo development to horizontal push increase of planned bank purchase?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: I don’t think so because we still have around 2,600 hectares. That’s still good for combinations horizontal vertical. If you combine both, that will be around probably, like, fifteen to up to thirty years of development. So we don’t even have to buy that.

Conference Moderator, VistaLand and Lifescape: Among the total cash number, how much is free cash? How much is restricted cash and investment?

Brian Edang, CFO and Head of IR, VistaLand and Lifescape: Today, if you get the breakdown of 45,000,000 in cash, investment in amortized cost is around 42,000,000,000 and the cash, including long term, short term investment is around TWD 3,500,000,000.0. That’s the breakdown of the 45,000,000,000 cash balance and investment. Okay. So we don’t see any additional questions in the q and a box or the chat box, but we’re always available for you guys. So you can contact us in time, and I’ll see you in a week.

Oh, there’s a last question. What is the amount of assets secured at collateralized? Technically, there’s not because we have a negative plans. But the way we hedge around 35,000,000 or most of our investment, the number that is supposed to actually against an SBLC, which we borrowed against the peso. So that’s what it what would you say a secured or collateralized.

But, technically, most of our investment in investment properties, inventories, and land are actually unencumbered. So as I think, so thank you very much for your participation. We’ll see you next week for the first quarter results, and we’ll give more information. And if you have other questions, you can always contact us anytime. Thank you very much, everyone, and we appreciate your participation.

Thank you.

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