CreditSights sees Vista Land securing refinancing despite tight liquidity
CreditSights has maintained its buy recommendation on Vista Land & Lifescapes, expecting the developer to secure enough refinancing to cover debt maturities through end-2027 despite "extremely tight" liquidity and deteriorating operating cash flow. The firm noted net leverage rose to 8.9 times in 20
VILLAR-LED Vista Land & Lifescapes, Inc. (VLL) is expected to secure sufficient refinancing to cover its debt maturities through the end of 2027 despite what CreditSights described as “extremely tight” liquidity and deteriorating operating cash flow.
In a summary of its outlook released on Wednesday, the credit research firm said its base-case expectation was for the property developer to obtain enough refinancing to meet its upcoming debt maturities, even as its net leverage increased and operating cash flow deteriorated in 2025. The firm maintained its buy recommendation on Vista Land despite financial results it described as “softer than expected.”
Vista Land’s net leverage, which measures debt after deducting cash relative to operating earnings, rose to 8.9 times in 2025 from 8.1 times a year earlier, according to CreditSights. The research firm estimated that Vista Land’s earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 9% year on year in 2025 based on its calculations, with EBITDA turning negative in the fourth quarter.
CreditSights attributed the decline to weaker property sales and cost pressures, although new property bookings remained “resilient,” indicating buyer confidence and supporting future revenue visibility. Vista Land’s attributable net income fell 69.6% to P2.33 billion in 2025 from a year earlier, while consolidated net income declined 59.2% to P3.83 billion, according to its annual financial report filed with the Philippine Stock Exchange (PSE) on Monday. Revenue slipped 3.1% to P35.8 billion, while total costs and expenses rose 25.2% to P19.04 billion, driven by higher real estate cost of sales and operating expenses.
CreditSights said Vista Land’s operating cash flow deteriorated due to higher interest payments and slower receivables turnover. Capital expenditures “declined meaningfully,” keeping free cash burn broadly unchanged from a year earlier, the firm said. CreditSights said Vista Land’s financial statements received an unqualified audit opinion, with no material restatements or accounting anomalies identified.
The research firm identified Vista Land’s dollar-denominated securities investments and unencumbered investment properties as potential funding sources for its upcoming debt obligations. CreditSights said the book value of Vista Land’s dollar-denominated securities investments had declined to approximately $425 million, but these remained a potential funding source for its 2027 dollar-denominated bond repayment. It also identified approximately $2.1 billion in unencumbered investment properties, or assets not pledged as collateral, as another potential funding source.
The firm said it was monitoring Vista Land’s planned asset disposals, particularly the potential sale of two malls for a combined P15 billion. “We remain watchful of progress in asset sales, particularly two malls for P15 billion as earlier guided,” CreditSights said. In September, reports said Vista Land was considering the sale of malls in Mandaluyong and Mindanao, with a transaction targeted by the end of 2026. The potential disposals come ahead of a $420-million bond maturity in July 2027, making asset sales and refinancing important components of the company’s funding plans.
Vista Land was the first of six Villar-linked companies whose shares were suspended from trading to release its 2025 financial results. Its shares have been suspended from trading since June 2 for failing to submit its first-quarter financial report, while the PSE imposed penalties over the late filing of its 2025 annual report.
