SEC examining Villar Land’s P1.3-T property appraisals, P1-T profit

By Revin Mikhael D. Ochave, Reporter

THE Securities and Exchange Commission (SEC) said it is reviewing the P1-trillion net income and valuation gains reported by listed property developer Villar Land Holdings Corp. for 2024, along with the company’s share price.

“We’re examining it; we’re paying attention to the details before we come up with a decision one way or the other,” SEC Chairperson Francisco Ed. Lim told reporters on the sidelines of the Shareholders’ Association of the Philippines, Inc. Annual General Membership Meeting in Makati City on Friday last week.

“There are many details. We cannot make judgments before investigating the facts. Was there insider trading? Was there manipulation? These are technical and legal issues. What I don’t want is for the SEC to act hastily. We’re doing fact-finding first,” he added.

The Philippine Stock Exchange (PSE) suspended trading of Villar Land shares, formerly Golden MV Holdings, Inc., on May 16 after the property developer was unable to file its 2024 annual report.

Villar Land’s shares were unchanged at P2,296 per share as of May 15. The trading suspension has yet to be lifted as of writing.

As of Aug. 8, the company had a market capitalization of P1.48 trillion, while public ownership stood at 11.33%.

On March 31, Villar Land reported a net income of P999.72 billion for 2024, up from P1.46 billion the previous year, attributing the spike to fair value gains on investment properties that ballooned to P1.33 trillion from P59 million in 2023.

Revenue fell by 25% to P3.58 billion as real estate sales declined by 26% to P3.31 billion due to lower residential unit sales.

The company is engaged in the development and sale of memorial lots and columbarium facilities, as well as residential projects.

Villar Land also attributed the fair value gains to its acquisition of Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corp., which collectively own 366 hectares of prime land within the 3,500-hectare Villar City development.

“These properties were recorded in the books as investment properties and accounted for using the fair value method,” the company said.

In a separate statement, Villar Land said it welcomes the SEC’s fact-finding investigation, adding that its financial statement is now undergoing a “rigorous audit process” by external auditors, which involves a comprehensive review of appraisal reports for high-value properties.

“This extensive audit is necessary to ensure the accuracy and integrity of the financial statements. Once the audit is concluded, the audited financial statements will be publicly released in full compliance with regulatory requirements,” Villar Land said.

“The company reiterates its commitment to transparency and compliance with existing rules and regulations being enforced by both the SEC and the PSE,” it added.

Villar Land said it has consistently disclosed material developments and continues to coordinate with regulatory bodies regarding the status of its financials.

“The company continues to engage and will continue to cooperate with its regulators and comply with all instructions and requests for information during the course of its fact-finding exercise,” it added.

The SEC approved the corporate name change of Villar Land from Golden MV in April.