A subsidiary of Vista Land and Lifescapes, Starmalls Inc. and its chain of malls are seen as a primary growth driver for the Villar-led company, which had recently acquired 88.34 percent of Starmalls.
COL Financial, a stockbrokerage firm, forecasts that Starmalls’ "EBITDA (earnings before interest taxes depreciation and amortization) to grow at a CAGR (compounded annual growth rate) of 14.15 percent and net income to grow an average of 10.4 percent annually," according to firm analyst Richard Laneda in a published report.
The report noted that, within the year, "Starmalls will add 350,615 square meters (sqm) of GFA, 220,000 of which area already open. They plan to add 135,000 sqm of GFA in 2017 and another 300,000 sqm of GFA in 2018, bringing total GFA to 1.3 million sqm by end of 2018."
"Not only will its revenues grow faster than real estate sales but being a higher margin business, Starmalls will also accelerate the growth of EBITDA and net income. We forecast Starmall revenues to grow at a CAGR of 40.30 percent from P2.62 billion in fiscal year 2015 to P7.23 billion by full year 2018," the report stated.
Total revenues are estimated to grow at a CAGR of 9.45 percent from 2015 to 2018, adds the report.