December 7, 2024 | 12:00am
MANILA, Philippines — VistaREIT Inc. (VREIT), the real estate investment trust of Villar-owned property developer Vista Land & Lifescapes Inc., is aiming to double its gross floor area (GFA) by the end of 2027 as part of its goal to provide competitive investment return to shareholders.
This was disclosed by the company to the Philippine Stock Exchange yesterday in its three-year investment strategy prepared by VFund Management Inc.
Currently, VREIT has a portfolio of 256,404 square meters with an appraisal value of P25.3 billion. This is composed of 10 community malls and two office buildings.
Among the investment objectives of the company in the next three years is the diversification of its portfolio by investing in other VLLI’s commercial real estate properties.
“The principal investment mandate and strategy of the company is to invest, on a long-term basis, in a diversified portfolio of income-generating commercial real estate assets strategically located within Vista Land Group’s integrated developments in key urban areas,” the company said.
It added that it aims to maintain high occupancy rates and quality tenants with a particular focus on those offering essential goods and/or services.
Additionally, VREIT is also targeting to achieve at least 10 percent annual total shareholder return through organic growth and new acquisitions.
To achieve its objective of increasing shareholder value, the company has set key strategies to be implemented in the next three years.
These strategies include achieving organic growth through proactive asset management and enhancement as well as pursuing inorganic growth through new acquisitions and investment.
“Pursuant to the fund management agreement and the REIT Law, the fund manager, in accordance with the company’s investment strategy and plans, will work towards maximizing investment returns and enhancing the value of the company’s portfolio,” VREIT said, adding that the fund manager would actively consider and solicit opportunities for the company’s investment and future acquisitions.
Another strategy is to deliver a proactive leasing and tenant management as well as superior service to tenants.
Other key strategies of the company are implementing a sound capital and risk management strategy and strengthening of environment, social and governance initiatives to build community goodwill while improving operating cost efficiencies.
Moreover, VREIT will also continue to elevate mall standards through innovation concepts in the retail experience.
“The company continuously looks out for opportunities where it may innovate and further enhance the experience of its stakeholders based on market trends and the changing office and retail landscape,” VREIT said.
As of Sept. 30, VREIT’s assets portfolio has an average occupancy rate of 97 percent and a gross revenue of P1.5 billion.
In the same period, the company already distributed 95.32 percent or P999.15 million of its P1.05 billion distributable income to its shareholders.
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