VILLAR LAND Holdings Corp. has set the ultimate audited fair value of its newly acquired properties at P52.74 billion, in response to its 2024 annual report filed with the Securities and Exchange Commission (SEC), sharply lower than an earlier estimate of P1.33 trillion that drew regulatory scrutiny.
The valuation covers 366 hectares of prime land inside Villar City, a 3,500-hectare master-planned development spanning Metro Manila and Cavite. Villar Land acquired the properties through its purchase of Althorp Land Holdings, Inc., Chalgrove Properties, Inc., and Los Valores Corp. for P5.2 billion on Sept. 30 last yr.
In its filing on Thursday, the corporate said the properties were initially appraised using the income approach, yielding an estimated value of about P1.3 trillion. After discussions with its external auditor, Punongbayan & Araullo (P&A), Vil-lar Land adopted the market approach for its audited financial statements.
“Appraisal reports were obtained from SEC-accredited property appraisers to support the fair value measurement… The corporate agreed to make use of the valuation based on market approach,” the report said.
In accordance with Note 28 of the audited financial statements, the fair value of investment properties was disclosed at P52.74 billion, while the properties were recorded at P8,759,321,390 cost, in compliance with Philippine Financial Reporting Standards (PFRS).
P&A identified the valuation as a key audit matter, citing “significant judgments and high estimation uncertainty” in determining fair values. The audit report noted that the market approach relies on subjective inputs corresponding to comparable sale prices, bargaining allowances, location, topography, and amenities, making valuations highly sensitive to assumption changes.
The auditors said they performed extensive procedures, including reviewing appraisal reports, testing assumptions against market data, and interesting independent valuation specialists to validate the figures.
The adjustment follows a SEC show-cause order issued to E-Value Phils., the unique appraiser, to elucidate its P1.33-trillion valuation. The regulator also imposed P12 million in fines on Villar Land and 11 of its officials in August for delayed submission of audited financial statements, citing violations of the Securities Regulation Code.
The corporate reported a net income of P1.423 billion for 2024, barely higher than P1.416 billion for 2023, marking a 0.5% increase yr on yr. The advance was driven by higher interment and chapel service revenues, which grew 23% and 43%, respectively, offsetting a 26% decline in real estate sales.
Total assets surged 28% to P35.75 billion from P27.98 billion in 2023, largely as a consequence of the Villar City land acquisition and reclassification of investment properties. Investment properties at cost jumped from P76 million to P8.76 billion, a rise of P8.68 billion or 11,462%, while fair value disclosure rose to P52.74 billion.
Equity declined barely by 3% to P13.67 billion, while liabilities rose 59% to P22.08 billion, reflecting higher payables and related-party obligations linked to the acquisition.
EARLIER UNAUDITED DISCLOSURE
On March 31, Villar Land reported a net income of P999.72 billion for 2024, up from P1.46 billion the previous yr, 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 as a consequence of lower residential unit sales.
Villar Land, formerly Golden MV Holdings, Inc., modified its name in November 2024 following an amendment to its articles of incorporation. It’s among the many country’s largest developers of memorial parks under the Golden Haven brand and mass housing projects through Bria Homes.
On the local bourse on Thursday, shares of Villar Land were down by 29.97% or P688 to shut at P1,608 apiece. — Beatriz Marie D. Cruz and Arjay L. Balinbin