The (Un)Steady State of Philippine Real Estate in 2016

At 109.77%, 8990 Holdings still has the most Real Estate Receivables relative to its Stockholder's Equity in 2016. Next is Century Properties at 70.49% of Stockholder's Equity, followed by Ayala Land at 46.92% of Stockholder's Equity.

Naturally, 8990 Holdings still has the most problematic Real Estate Receivables. Problem Real Estate Receivables amount to 11.10% of its Stockholder's Equity as of 2016. Believe it or not, this figure is way down from the 20.40% it posted in 2015.  Ayala Land's Problem Real Estate Receivables amount to 6.72% of its Stockholder's Equity in 2016. Neck and neck for third place are SM Prime Holdings and SM Investments with Problem Real Estate Receivables amounting to 3.68% and 3.61% of their respective Stockholder's Equity.

 SM Prime Holdings also holds the dubious distinction of having the highest percentage of Past Due But Not Impaired Real Estate Receivables relative to Total Real Estate Receivables in 2016. This is closely followed by Ayala Land with 14.63% of its Real Estate Receivables in Past Due status. Both Vista Land and 8990 Holdings have similar ratios with 9.58% (Vista Land) and 9.44% (8990 Holdings) of its Real Estate Receivables falling Past Due in 2016.

Related Posts:

Ayala Land's Real Estate Receivables Problem Has Gotten Worse, Not Better

8990 Holdings Inc.'s 2016 Annual Report: What a Difference an Auditor Makes!

8990 Holdings Inc.'s Impaired Installment Contracts Receivable (ICRs): The Pig Has Finally Broken Out of the Python!

The Philippine Real Estate Bubble Has Also Burst For... Ayala Land!

The Philippine Real Estate Bubble Has Also Burst for Vista Land

The Philippine Real Estate Bubble Has Already Burst for HOUSE (8990 Holdings, Inc.)

The Philippine Real Estate Bubble Has Also Burst for Vista Land

Last year, we documented how the Philippine Real Estate Bubble had already burst for HOUSE (8990 Holdings, Inc.) wherein there was a marked deterioration in 2014 in delinquencies in the company's installment contract receivables (ICRs) for the year 2014.

A simple chart tells the story:

 
Simply put, 8990's ICRs that were over ninety days past due jumped by a minimum factor of 10 times in the year 2014. Around 10% of HOUSE's ICRs became impaired.



In a subsequent post on a related blog, we noted that a similar dynamic was playing out in Vista Land & Lifescapes, Inc. (VLL), one of HOUSE's main rivals in the mass housing market space. Although not quite as acute as HOUSE, VLL exhibited a significant deterioration in the credit quality of its ICRs.







 


The deterioration has continued throughout the whole of 2015,  confirming that real estate bubble has also burst for VLL.  In 2015, there was a marked jump in VLL's ICRs that were over 90 days past due.  

Unlike HOUSE, the value of the impairments relative to the entire ICR portfolio is very small - less than 1% for VLL versus 10% for HOUSE.

Source: Vista Land & Lifescapes, Inc.