Leading VisMin developer Cebu Landmasters Inc. (CLI) of the Soberano family recorded a robust 32 percent growth in consolidated net income to P2.1 billion in the first half of 2023 from P1.6 billion in the same period last year.
During its quarterly briefing, the firm said its attributable net net income improved 9 percent to P1.68 billion from P1.55 billion in the first half of 2022.
The growth in earnings was due to the solid results across all revenue streams pushing CLI’s consolidated revenue to increase by 23 percent to P9.15 billion, up from P7.36 billion last year.
This is supported by higher construction progress and take-up of new launches that also led to the highest first-half reservation sales figure in the company’s history.
“Residential demand continues to heavily outweigh supply in the Visayas and Mindanao regions, especially in the middle-market and economic segments which comprised the bulk of our launches,” CLI chairman and CEO Jose Soberano III said.
He noted that, “CLI remains to be at the forefront of the action, while maintaining a strong financial and operational discipline in order to healthily sustain the company’s growth.”
The company’s rental revenues jumped 41 percent to P50 million, attributable to strategic rental increases and higher occupancy.
Travel and leisure sector resurgence, meanwhile, propelled CLI’s hotel operations to achieve a 74 percent surge, fueled by an increase in bookings and higher room rates of Citadines Cebu City.
CLI is expected to grow its recurring income base with three more hotels opening within the year, with the openings of lyf Cebu City, Citadines Bacolod City and CLI’s first co-living brand The Pad Co-Living in Banilad Cebu City.
Revenue from management fees of CLI Property Management Inc. (CLIPM) — the company’s property management arm established to maintain the CLI brand quality for every completed project — also increased by 26 percent to P31 million from the 28 completed projects it handled during the period.
During the first half of the year, CLI launched six projects worth P13.5 billion. This fresh supply of inventory led to CLI registering its highest first half reservation sales figure in the company’s history, rising by 36 percent to P10.5 billion during the period.
Reservation sales came the strongest from Davao, comprising 35 percent of the total for the period. The listed company opened its first house and lot project in Davao last June, which reached close to 80 percent sales in just three days.
Meanwhile, the other 31 percent of reservation sales came from its Cebu operations. Bohol produced 15 percent, Bacolod and Palawan combined for 8 percent, and the rest came from other cities like Iloilo and Dumaguete.
The company’s capital expenditures for year to date amounted to P5 billion, of which, 79 percent was spent on residential development, 12 percent paid for land acquisitions, and 9 percent for investment property.
CLI is launching its residential project in Butuan within the year and is expanding in Mindanao by recently acquiring 21 hectares in General Santos City.
“With the remarkable results we’ve attained in the opening half of 2023, CLI is confidently progressing towards its outlined objectives, including the much-awaited strategic expansion in Luzon,” Soberano said.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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