VisMin developer in Cebu Landmasters Inc. (CLI) reported a 23 percent improvement in net income to P1.85 billion in the first nine months of 2021, from P1.5 billion in the same period last year, surpassing its full-year 2020 figure of P1.84 billion.
In a disclosure to the Philippine Stock Exchange, the firm said robust sales and rapid construction progress, due to sites operating fully at 100 percent, raised consolidated revenues year-on-year by 34 percent to P7.7 billion from P5.7 billion.
The bulk or 44 percent of revenues was contributed by CLI’s popular housing brand Casa Mira, with the fast-selling mid-market Garden Series accounting for 30 percent, and the top-end Premier Masters contributing 24 percent.
Cebu was the source of 59 percent of revenues. CLI also reflected strong and growing sales in other key cities namely: Cagayan de Oro, which took credit for 10 percent; Bacolod, 10 percent; Iloilo, 10 percent; all others, 11 percent.
“The pandemic has emphasized to our buyers the importance of and impact to family stability of owning a home in a safe and secure community,” said CLI Chairman and CEO Jose Soberano III.
He added that, “We will continue to meet this need and to earn the trust of VisMin homeowners moving forward.”
Cebu Landmasters’ 100-hectare Minglanilla Techno Business Park (Ming-Mori) reclamation in the municipality of Minglanilla, Metro Cebu.
“Our growth is based on our sustained earnings in 2020 and we are on track to exceed our 15 percent to 20 percent growth guidance in 2021 and in the next 2 to 5 years,” said Soberano.
The company’s growth momentum in 2021 was sped up by seven projects collectively worth P12 billion, or significantly more than the P5.5 billion value of launches recorded in the first nine months of 2020.
As of end-September, 77 percent of 2021 launches were already sold out. CLI has already sold out 90 percent of its inventory across all projects in different stages of development allowing the firm to record unrecognized revenue of P24.2 billion, up 19 percent from P20.6 billion as of the end of 2020.
The more favorable economic conditions in VisMin, CLI’s geographic scope, was recently affirmed by an uptick in the 180 rooms turned over in Citadines Cebu City. The hotel was able to record an occupancy of 90 percent for the month of September.
The next CLI hotels to be completed are lyf Cebu City (opening early 2023) and Radisson Red Cebu Mandaue (opening end 2023).
The improving business climate is expected to also benefit the newly completed Latitude Corporate Center at the heart of Cebu’s most prestigious business district, Cebu Business Park.
Latitude doubles CLI’s gross leasable area to 29,000 sqm. from 14,000 sqm. in 2020 and has already resulted in a 5 percent increase in leasing revenue year on year.
CLI has invested P8.7 billion in capital expenditures this year with acquisitions for new land amounting to P1.2 billion. It purchased over 40 hectares in key VisMin areas bringing the firm’s landbank to 105 hectares. An additional 70 hectares are currently under negotiation.
CLI is set to launch additional projects in the coming weeks including more Casa Mira communities in Bacolod and Davao; a mid-market Velmiro, also in Davao; and its first beach residence, Costa Mira in Mactan.
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Article was originally published in Manila Bulletin and written by James A. Loyola.
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