Villar’s VistaREIT properties lost P13 billion in value in 2025

VistaREIT's delayed financial statements reveal a massive property valuation loss and nearly P2 billion in rental receivables from other Villar companies VistaREIT reported a significant property value decline of 45.5%, leading to a net loss of P11.46 billion for 2025, primarily due to changes in property valuation methods. Despite a high occupancy rate of 97%, the company's revenue fell by 18.8%, with rental income decreasing by 21.2% compared to the previous year. The AllValue group, which includes Villar-owned retailers, has P1.99 billion in lease receivables owed to VistaREIT, with expectations of recovery supported by the Villar family's assets. This is AI-generated. Read the article for full context. Report any errors. MANILA, Philippines – Remember Villar Land‘s spectacular P1.3-trillion property revaluation that fell apart under scrutiny? Another company in billionaire Manny Villar‘s business empire has now reported a massive downgrade in property values. On top of that, its sister retailers have nearly P2 billion in rental obligations on the books. VistaREIT, a real estate investment trust (REIT) which owns 10 malls and two office buildings, disclosed that the value of its investment properties plunged by nearly half (45.5%) to P15.50 billion at end-2025 from P28.45 billion in 2024. The P12.97-billion valuation loss dragged the company to a P11.46-billion net loss for 2025, a dizzying 330% drop from last year, according to its long-delayed annual report finally made public on Tuesday, November 3. What does this loss mean? VistaREIT did not actually lose nearly P13 billion in cash, nor did its properties suddenly lose that much rental business. In fact, the company reported a 97% occupancy rate. The loss came largely from changes in how much its properties are estimated to be worth. Appraisers calculate property values partly by looking at the rental income they are expected to generate in the future, then “discounting” those future earnings to estimate their value back in the present. A discount rate is used to accounts for the time value of money and investment risks. The higher the rate, the less those future earnings are worth today. For VistaREIT, that rate rose from 8.40% in 2024 to between 10.87% and 11.26% in 2025, cutting the estimated value of its properties. Under the fair-value model, that paper loss is also reflected in reported net income. Without the property revaluation, VistaREIT said it would have earned P1.45 billion in net income in 2025, slightly higher than the P1.44 billion recorded in 2024 . However, its revenue still fell 18.8% to P2.17 billion, with rental income declining 21.2% to P1.94 billion. AllHome, AllDay’s rising rent obligations Changing property valuations are only half of VistaREIT’s story. Its report shows that the AllValue group — anchor tenants which include AllHome, AllDay, and other Villar-owned retailers — had P1.99 billion in lease receivables excluding future rent escalations at end-2025, up from P1.69 billion in 2024. Including future lease escalations, the figure reached P3.87 billion. These represent rent owed to VistaREIT but not yet collected. The company described the P1.99-billion balance as “legally enforceable and due and demandable,” although its report does not say how much rent was actually overdue by Villar’s other companies. (READ: Anyare? Villars’ AllHome, AllDay confirm store closures) Despite the growing rental receivables, VistaREIT has not recorded any expected losses on amounts owed by related companies. It expects to recover the money, partly because its ultimate parent, the Villar family holding company Fine Properties, has offered property holdings and other assets to back those obligations. “In addition, Fine Properties, Inc, the Company’s ultimate Parent Company, offers appropriate support and makes available its property holdings and other assets in relation to the recoverability of the related party receivables. As such, the Company believes that the related party receivables are recoverable,” read the audited financial statements in its discussion about related party receivables. The new numbers come at an awkward time for the Villar group, which has been exploring property sales as billions in debt repayments approach. Flagship developer Vista Land reported a 59% drop in 2025 net income amid higher financing costs. – Rappler.com ALSO ON RAPPLER [Vantage Point] The Villar Land scandal now has a gatekeeper problem [Vantage Point] Villar Land: Follow the P1.3-trillion paper trail [Vantage Point] The Senate’s Villar problem [Rappler’s Best] Ah, the Villars Villar Land responds to trillion-peso valuation controversy, other issues How does this make you feel? Loading