[Vantage Point] Netto income from Villar Land: a trillion peso-mirage?

It is no wonder that what the Villar Land Holdings Corporation (PSE: VLC), formerly Golden MV Holdings, had recently reported as disclosure of the media, would shock investors. For 2024, the company terminated a net recovery of almost 1 trillion peset.

In his announcement on March 21, 2025, Golden MV announced that his investment properties in the previous year in the amount of 1.33 trillion P. 33 trillion pioments, which is mainly due to the appreciation of these properties. Until the end of 2024, these Fair -Value gains led to the total assets of the company of 1.37 trillion peseters.

In September last year, the company Althorp Land Holdings Incorporated, Chalgrove Properties Incorporated and Los Valores Corporation, which together own 366 hectares of valuable country in Villar City, bought a 3,500 hectare project south of Manila. Golden MV explained that the assets were registered as investment properties in the records and were taken into account using the approach for the current value.

The Fair Value method is a adjustment adjustment with which companies can recognize as income without actual sale or cash inflow as an income.

The term “fair market value” (FMV) refers to the price that a property would realistically get in a competitive market, provided that both the buyer and the seller are informed, ready and act in their own interests. FMV differs from the estimated value of the property for taxation, the estimate of an expert or the subjective beliefs of a buyer or seller over the value of the property.

At the present time of the PSE database of the Philippine Stock Exchange (PSE), the company's own website and global platforms such as Bloomberg and S&P Global, there are no financial registrations that support VLC's claim. The most recent publicly available explanation is dated from September 2024.

So far, Vantage Point has learned that VLC asked the Securities and Exchange Commission (SEC) and PSE to approve the change in its company name and the stock symbol on the earnings thrust on a re -evaluation of the investment properties. The SEC approved the name change on April 15. For 2024, the company called for a net profit of almost 1 trillion peset, allegedly from 1.33 trillion P. trillions with the added value.

On May 16, 2025, PSE suspended the trade with golden MV shares due to its failure to present their annual report in 2024-a topic that also influenced other companies with Villar-connected companies. On May 19, however, the PSE increased the suspension of Vista Land & Lifescapes incorporated and two other companies after receiving copies of their reasonable annual reports. While Vista Land has already submitted his annual report, two other companies do not yet have to submit in Villar, Vistamalls and Golden MV Holdings-Zum now.

Without certified data beyond the third quarter of 2024, in order to give the massive profit and only non-solvable profits, the supposed number of earnings of P1 billions increasingly seems to be a PR spin as a reflection of the actual business performance.

A rating based on steam?

Remember the following: A property bought for perhaps P200 per square meter (SQM) years ago is currently a value of 20,000 peseters per square meter (SQM) and market values, which is essentially due to inflation and appreciation over time.

Imagine the large difference of 19,800 peseters per m² (p20,000 bar value fewer P200 costs) multiplied by hundreds of thousands of square meters that have been acquired over the years.

The difference of 19,800 peseters is referred to as an “evaluation increase” in the bookkeeping and treated as an increase in net assets (paper income) because it is simply not realized. An actual increase in net assets can only occur if the P200 per m² is actually sold with 20,000 peseters, which can either occur in the distant future or not at all because nobody buys the property for economic reasons or property clamp. Or worse, the evaluation value was bloated.

Example: The actual market value of a property is only P2,000 per square meter, but a so -called independent expert says that its evaluation value is 20,000 peseters.

Imagine the number of zeros that you can add by only based on your property value on the personal opinion of an expert. That, my friend, is a creative accounting that is not generally explained or understood by mortals. What if the Ayala Land and SM Development Corporation also offer its respective values ​​again? Get drift?

In reality, Villar Land could burn cash, lose income and go beyond its true value with valuation multipliers. This is not a success story. It is a textbook case of financial alchemy.

Important findings: Villar Land is a money burner, no ATM

For the 12 months in September 2024, Villar Land achieved negative free cash flow 1.5 billion pesetes – an astonishing contradiction to his supposed profit of 1.3 trillion peseters. While it celebrated record income on paper, the company bleed real money. You simply cannot pay interest, dividends or salaries with fair value. The market finally wakes up.

1. 'Profits' that are completely based on paper

According to the last publicly available financial submission of the company (12 months until September 30, 2024): Villar Land's:

• The net profit was 1.38 billion peseters
• Fair Value gains were 1.62 billion peseters

Subtract the accounting magic and Villar Land lost money. There was no sensible contribution through the actual sales of real estate, leasing income or business expansion.

If 117% of your profits are not payment -related, you do not earn any money. You write fiction.

2. Negative cash from business: a business the other way round

Villar Land's cash flow declaration shows brutal truths:

• Cash from business: -(minus) P1.46 billion
• Free Cashflow: -(minus) P1.51 billion.
• Change of income that has not earned: -(minus) p1.62 billion

Although the company shows accounting gains, the company is bleeding real cash. It is even more alarming that the collapse in unmatched income indicates that buyers go away, reimbursed deposits or dry out previous sales.

Healthy companies do not report record profits while burning cash and losing advance payments.

3. Long -term decline hidden behind a change of name

Villar Land, formerly Golden MV Holdings, was renamed at the beginning of 2025 and changed his ticker shortly before his income was disclosed in “VLC”. This comfortably coordinated facelift covered an ugly reality:

• In the past 5 years, profits have been decreased by -11.1% annually
• Sales have completed annually by -12.3% annually
• The Filipino sector of consumer services grew by +22.7% annually

This is not an outlier. It is a long-term decline that is overdosed with accounting gimmicks and PR spin.

4 .. the most overvalued company in the Philippines?

From May 15, 2025, VLC acted with:

• Price-to-performance ratio (P/E): 1,071x
• Price-to-sale (p/s): 269x

Even the foamest growth shares in the United States' Dotcom bubble rarely exchanged so high. VLC does not sell a vision of future innovations. It marks the old country and calls it income.

The market pays luxury ratings for a company outdoors.

6. Acquisitions of Villar City and the new rating feedback loop

In 2024, VLC Land acquired by Althorp Land Holdings, Chalgrove Properties and the Los Valores Corporation for his Villar City project. These transactions conveniently:

• In the company's books, areas were added
• Created the narrative for revaluations
• Fair -Fair -Value gains that “increase” the income

This sets a dangerous loop: acquire the country → Realate the country → Book profit → inflate stocks → justify further acquisitions → Repeat →

This round model works, but only until the money looks or the examiners demand reality -based reviews.

Conclusion: Villar Land is a story that could only love an Excel table

Villar Land Holdings is a hollowed -out real estate shell under the rebranding and revaluations. It is:

• Lose income
• Burn money
• Imposed by non-Kaschs wins
• And with several multipliers around 100 times larger than in the sectord average

The company has not created a real, sustainable value for years. His most recent “profits” are not profits at all – they are the by -product of the accounting transferring, not the economic performance.

In our view, the company is overrated by an order of magnitude, and we expect a sharp correction as soon as investors wake up with the inequality between cash and claims. The billing does not come. It started. – – Rappler.com