Good afternoon, ladies and gentlemen. Welcome to Vista Land & Lifescapes' FY 2024 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. 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 December 31, 2024. Here are some highlights of our performance in 2024. We recorded total revenues of PHP 37 billion. Gross profit was at PHP 11.8 billion, with a gross profit margin of 71%. EBITDA is at PHP 22.8 billion, with an EBITDA margin of 62%. Core net income actually is recorded at PHP 9.4 billion. Our reservation sales was at PHP 79.1 billion. Total assets for the year ended with PHP 380.5 billion, with a total equity of PHP 137.3 billion, and ended the year with a net debt to equity of 0.86 times. We'll give you more details of this in the next few slides. The details of our income statement that follows. We recorded a total revenues of PHP 37 billion, reflecting a 5% year-on-year growth, and this is due to the following. First, real estate revenue registered a growth of 9% to PHP 16.6 billion from PHP 15.2 billion same period last year. This is primarily to the increase in the overall completion rate of the sold inventories of the company's business units. In terms of our unbooked revenues at the end of December, it was at around PHP 83.7 billion versus PHP 78.2 billion last year. Rental income registered PHP 16.6 billion from PHP 16 billion last year. This is up 4%, and the increase was primarily due to the increase in the rate for the year. Income from parking, hotel, mall administrative and processing fees, and others decreased by 20% from PHP 2.1 billion for the full year 2023 to PHP 1.7 billion for 2024. The decrease was primarily attributable to the significant decrease in the four features for the year. There were no significant cancellations for the year. Next, interest income increased by 12% from PHP 1.8 billion for the year ended December 31, 2023, to PHP 2 billion at the end of 2024. The increase was primarily attributable to the higher interest received from the investment of amortized costs, which clocked in an increase of 46% to PHP 1.75 billion, which was offset by the significant decrease in our interest income from installment contracts receivable, which posted a decrease of 54% to PHP 277 million, as the majority of our buyers are actually getting mortgage financing. Let's go to our gross profit. It increased 30% to PHP 11.8 billion, 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 11.6 billion to PHP 10.7 billion for 2024. 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 from PHP 20.6 billion to PHP 22.8 billion for the year ended 2024. This is due primarily to the gross margin improvement and the decrease in operating expenses. Interest and other financing charges increased significantly by 73% from PHP 5.7 billion for full year 2023 to PHP 9.8 billion 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 8.5 billion in 2023 to PHP 9.4 billion. Moving on to our real-time sales, reservation sales continued to trend higher. If you look at this, full year 2023 had an increase of 10% to PHP 79 billion. The fourth quarter actually clocked in around a 9% increase to PHP 20.6 billion. In terms of our real estate revenue contribution, Camella Homes accounts for 57%. This is a decrease from the 69% it contributed in 2023. If you look at it, most of the increases come 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 Residences or our subsidiary for vertical development, which accounts for 27% of the total in full year 2024 versus 21% in 2023. Onto our leasing business. As of the end of December 31, 2024, we still have around 1.6 million sq m of gross floor area that's equivalent to 108 commercial assets across the country, comprising 42 malls, 59 commercial centers, and 7 office buildings. If you look at the breakdown, 87% of our GFA are retail malls and 13% office. Our retail mall actually is taking advantage of being located near our existing communities. 76% of our total GFA is located near Vista communities. Anchor tenants account for around 75% of GFA. 70% of our GFA are affiliated. What's new for the year is that we actually opened to more third-party tenants, and we got sign-ups and openings of new third-party tenants in some of our malls last year. On the next slide, these are the quarterly details of our leasing business. Operating GFA is at 100%, system-wide occupancy at 87%, with our mall at 86% and office at 92%. Moving on to the balance sheet. The company has a cash and cash investment decreased by 9% to PHP 45 billion from PHP 49.9 billion last year. This was due to the use of cash for debt servicing and investing activities. Total receivables went up 47% to PHP 122 billion, due primarily to the adoption of PFRS 15, higher reported sales, increase in other receivables, and improved rental income for the year. Real estate inventories decreased by 9% to PHP 58.2 billion, and this was due primarily to the launches for the year. Investment properties grew by 8% to PHP 135 billion. Partly, this is due to the capitalized interest for the year. With the adoption of PAS 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 PHP 380 billion, up 11%. Interest-bearing loans slightly increased by 1% to PHP 163 billion because last year, the company just refinanced most of its debt maturities for the year. Total liabilities increased by 16% to PHP 243.2 billion, due primarily to the increase in the accounts and other payables, as well as different tax liabilities for the year. Equity went up 3% to PHP 137.3 billion due to the net income recorded for the period. At the end of December 2024, our debt to equity stood at 1.19 times, lower than the 1.21 times end of December 2023, while our net debt to equity is at 0.86 times, slightly higher than December 2024. We have diverse funding sources. As you can see on the left side, on the left-hand side of the slide, the majority of our debt are actually long-term in nature, as shown in our maturity proof on graphs. Moving on to our land bank, it stood at around 2,690.5 hectares at the end of December 31, 2024, of which 30% are in the Mega Manila area and 70% are provinces. Our land bank represents at least 27-30 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 and municipalities and 49 provinces across the country. Please note that our land bank is actually distinct and separate from the other land owned by you. Slide 12, we have launched 25 projects, worth PHP 40.8 billion last year, comprised of two horizontal sets and 23 vertical projects. To date, we have a total of 30 Vista Estate projects launched. On CapEx, we set our CapEx at PHP 20.24 billion-PHP 30 billion. The majority are for construction and land development. For the full year 2024, we have actually spent PHP 28.9 billion, or 96% of the capital for the debt. 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 land for launches. Slide 14, just an update. On May 2, next slide, we actually, BLL International obtained $150 million in indicated loan facility, a rate of 6.4% from various banks, namely Sumitomo Mitsui Banking Corporation, Cathay United Bank, Chang Hwa Commercial Bank, First Commercial Bank, Mega International Commercial Bank, and Hua Nan Bank. They used the proceeds for $350 million for their financing. That's it for the present presentation proper. We're okay for the question and answer. Thank you very much. How will the debt maturing this year be financed? For the year, we're looking at around PHP 35 billion principal maturities. We will be refinancing all of that. So far, we acquired $150 million from the Sumitomo Mitsui Banking Corporation, I mean, from the dollar syndication as part of that. And the rest, we will be working on it. 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 developments? Around PHP 60 billion are actually from the receivables from contract receivables from residential. There are some other receivables, and leasing, I think, is around PHP 40 billion. What are Vista Land's plans in relation to the payment of its maturities this year? We usually look at the maturities. We have maturities such as retail bond by nationals and corporate notes. Most likely, we'll be refinancing using the same instrument. We already have other sources like the dollar funding or the dollar syndicated loans that we did. We'll work on that also. Where do you attribute the margin expansion? Are these expected to be the norm moving forward? I think the norm will be around 65%, 66%. This really came from the cost initiative plus the cleanup of some of the estimated land development costs of completed projects that were reversed. If we remove that, for example, 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 land. What is the total net income for the year 2024? 2024, PHP 9.4 billion. When will you have the first quarter 2025 earnings leasing? We're looking at next week to do the leasing. There was a substantial decrease in parking and other fees. Would you attribute this to lower foot traffic? Actually, the name says parking, administrative fees, as well as miscellaneous income. The majority of the decrease came from forfeitures where we have, if we have cancellation, we get whatever the payments of the buyers are. Actually, parking increased. All the other mall-related collaterals increased. The one that decreased in the miscellaneous income line item or the parking, miscellaneous administrative is the forfeitures. Do you have any plans for buyback of USD bonds? We are looking at that. The company is evaluating on the buyback of the US dollar bonds. Any material risk given higher refinancing costs? Actually, if you notice, this dollar syndication, we got it at 6.4%. I mean, we just have to come up, we just have to see what's the potential for lowering costs or opportunities whenever we do our maturities. What was the rental income without including rental escalation? Let me get back to you on that. Could you provide more color why accounts receivable increased? 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 PFRS 15, we have the recognized accounts receivable, I mean, significant financing component, and it was credited to the retained earnings beginning bonus. That's around PHP 10 billion. Can you share your CapEx plans going forward for the next few years? CapEx plans will disclose it next week for the first quarter briefing. So it's official. Could you comment on the annual results being delayed twice? Actually, the reason why we delayed the result is more, as mentioned, we have a new accounting partner assigned to us because the original partner was already on it seven years. The new team has to do all the, redo most of the procedures, and then we release it now. Should there be strains from SBLCs on local banks? What other significant financing channels are you looking at? Actually, that's why we actually always do our diversified funding sources, and we just got a new diversified funding source, which is the dollar syndication, because we want to make sure that we have other options in case there are some limitations in some sources that we have. Where is the biggest area for your land bank? If you look at the map a while ago, actually, majority are still Mega Manila. These are outside the areas where there's oversupply in condominiums. The majority of our land is really suitable for horizontal development, especially in the provincial areas. Equity just only increased of 3%, around PHP 4 billion. PHP 4 billion increased off, but the net income is around PHP 9 billion. What is the breakdown and the difference? I think that also there's an impact on the beginning retained earnings because we booked the adjustment pertaining to the PFRS 15, which is a change in accounting policy. I mean, the financial statement will show you the roll forward of the retained earnings, and you'll see the impact of the adoption of the new accounting standards. Will the receivables be reversed in first quarter, and how will this evolve going forward? We will be able to collect some, especially on the leasing side. There will be some timing difference, especially in the 8 or 10th portion. The accrued receivables, which is a significant increase, will be actually reversed over time. As mentioned, this pertains to future escalation, which has been straight line. The moment we are actually in the second half of the contract, for example, most of our contracts are 15 years, if we are already in the 8th year to 15th year, you will see accrued receivables decrease because escalation already kicks in. Therefore, the billed receivables will be higher than the cash collected. Could you share your unsold inventory levels? How much is RFOs, and how much is under construction? We have minimal RFOs. If you look at it, our inventory actually decreased. So it's PHP 958 billion now. If you look at it, the majority of our inventories are subdivided lots. So there's no housing component in that. We have around PHP 11 billion in condominium units and then around PHP 3 billion in housing units because the way we do it is we weekly sell first before we actually build. That's why we don't build up inventories. On potential buyback of USD bonds, any timeline for decision-making? Also, could 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? We are in discussions with the local bank, and of course, we also look at other potential sources for funding to actually roll over. When it comes to the timeline on the buying back of the receivable of the dollar bonds, we are actually actively looking at it, and we will see the decision within the month of June. Can you talk a bit more about your loan book? What is the NPL in 2024? Sure. Actually, if you look at it, our receivables from buyers is around PHP 60 billion. There is no allowance for doubtful account or impairment losses 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. We do not see significant levels of NPL 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. That is why there is no impairment losses recognized. What is the long-term outlook of the company in property sector? For this year, especially with the oversupply in condominium in Metro Manila or certain areas, specifically Bay Area, Pasig, and Bonifacio Global 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. You will see us, more of our launches will be more horizontal moving forward and provincial. Can you comment on the market for affordable housing where you have a large exposure? We think that the affordable market is actually gaining traction, especially with potential rate cuts moving forward. Inflation dropped to 1.4% last month. There is a room to cut more rates moving forward. I think that will increase affordability for our potential buyers. How much is current book sales? What are the pre-sales targets for 2025 versus 2024? Unbooked revenues is around PHP 83 billion as of end 2024. Pre-sales, we haven't set the target yet, but at least the level of 2024. Will the proceeds from USD syndication be used for the buyback, or will you raise a separate loan or cash balance? I mean, it can be either. I mean, we will look at the deployment of our funds and see if we can use some of that to either. How had the sales takeoff on Reci been so far for year to date? Can you give some guidance for 2025? 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 next week, we'll be able to give more color. Yeah. How much in terms of sales value is unsold inventory as of end 2024? We have around, in terms of cost, it's around PHP 11 billion for condominium units. Times two, that's around PHP 22 billion. How much of better loans have come due year to date, and how much of that has been refinanced? For the year, we're looking at around PHP 35 billion in maturities, and they come in long. June will come in around PHP 30 billion and around PHP 17 billion for notes in December. So the difference would have already been paid off. Does the company consider share buyback? That's always a plan. I mean, the company is always evaluating, and we'll see if we will be able to do some of the buybacks for the stock market. Will the receivables come down due to better collection or due to partly reversal of effect of PFRS? It is a 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 going to be next week. There are questions coming in from Carl C. Carl, please unmute your line. While we have successfully raised dollar-denominated loans, why not raise ESA domestic loans as well? We're looking at it. I mean, at the end of the day, we're looking at all potential options. I mean, that's why we diversify our funding sources. I mean, we're talking to banks. We're talking to some to do some retail bonds. All potential sources of funding, we're looking at it. Question coming in from Carl C. Carl, please unmute. Good afternoon. Let me just check if you can hear me. Hello? Yes, yes. Yes, great. Yeah, I'd like to get a flavor of demand. You mentioned, for instance, that you plan to do more horizontal and provincial projects. 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 beach or mountain. In my head, it was beach or mountain, higher-end projects. What's your view on that now? Related to that, I believe you said you sold more Brittany and Crown Asia. How's the demand for that type of product? Is that, in your opinion, stronger than, let's say, affordable housing? Right now, I mean, if you do, I mean, that was intentional last year. We were pushing for vertical projects, and it's not actually in the, it's actually across the Philippines. Now, we're still going to launch the leisure projects. We still have projects. We have still land in Baguio, Boracay, Palawan, Sierra Leone. I mean, we're going to launch that still. The majority of our launches will be our horizontal projects in the provincial. I mean, I think confidence in condo markets has been a little bit weaker. That's why we're looking at the other side with it, which is the horizontal. Brittany and Crown Asia will still opportunistically launch. We've seen that market a little bit like they're actually more resilient. That's why we've seen contributions from Brittany and Crown Asia increase by 6% compared to last year, so from 10% to about 16%. I mean, also on the vertical side, residentials will still 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. The core business or the majority of our launches will still be in the affordable, provincial, and horizontal developments. Let me just check if I understand. Did you mean that the Brittany and Crown Asia sales, were they vertical projects or horizontal projects? Combination. I mean, there was a combination of vertical and horizontal. Got it. 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 55%-60%, or has it come up or down? Still the same. It's around 60%. We'll see. I mean, so far, I mean, at the end of the day, most of our buyers are still the overseas Filipinos. Got it. To clarify, that's true even for Brittany and Crown Asia. It's just a richer OFW clientele. Or overseas Filipinos from the US, for example, or retirees, the profile will be different compared to the Camella and Crown Asia Filipinos. Still OFW. That's correct. Okay. Thank you. Those are all of my questions. Thanks, Carl. For first quarter debt repayment, did you obtain loan to refinance, or did you use cash to? It was a combination. We have some loans in the end, so we can't pay for the first quarter repayment. Does the company have dividend policy? Example is percentage of income for declaration of dividends. We do. We actually declare dividends in the fourth quarter every year ever since we listed, and it's around at least 20% of prior year's net income. If you don't see additional questions, same in the Q&A box or in the chat box up here. Regarding the previous allegations of unpaid property taxes, is there any investigation still ongoing? Just to clarify, there's no investigation. Actually, it was a part of it's political in nature. That particular unpaid property taxes pertain to our hotel in Las Piñas, where the government of Las Piñas had an assessment at around PHP 150 million real property tax where the basis was actually wrong. When we told them that the basis was actually wrong, they actually agreed to our basis, which would have been just PHP 50 million. We actually settled this agreement. There's no investigation in the first place. I mean, they're just saying that we haven't paid, that we actually are just waiting for them to actually finalize and agree with us on the correct amount, which we actually paid them in. Will the change of emphasis from condo development to horizontal push increase of land bank purchase? I don't think so because we still have about 2,600 hectares. That's still good for combinations, horizontal, vertical. If you can buy both, that will be around probably 15-30 years of development. We don't even have to buy land. Among the total cash number, how much is free cash? How much is restricted cash and investment? Actually, if you get the breakdown, we're PHP 45 billion in cash. Investment in amortized cost is around PHP 42 billion, and the cash, including long-term, short-term investment, is around PHP 3.5 billion. That's the breakdown of the PHP 45 billion cash balance and investment. Okay. We don't see any additional questions in the Q&A box or the chat box, but we're always available for you guys. You can contact us anytime, and I'll see you in a week. Oh, there's a last question. What is the amount of assets secured or collateralized? Technically, there's not because we have a negative branch. The way we hedge, around PHP 35 billion, or most of our investment in amortized cost is actually against an SBLC, which we borrowed against index open. That's what you would say a secured or collateralized. Technically, most of our investment in investment properties, inventories, and land are actually unencumbered. That is everything. Thank you very much for your participation. We will see you next week for the first quarter results, and we will give more information. If you have other questions, you can always contact us anytime. Thank you very much, everyone, and we appreciate your participation. Thank you.