Cebu Landmasters reports highest P1.55-B H1 net income, up 40% yoy

LEADING VisMin developer Cebu Landmasters Inc. (CLI) achieved its highest H1 net income performance of P1.55 billion, an increase of 40 percent versus the first half of 2021, on the back of strong sales and project completions.

Without the adjustment from CREATE law, CLI grew its earnings attributable to parent by 18 percent from the reported P1.1 billion of the same period last year.

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Real estate sales also grew by a robust 45 percent from P5 billion to P7.36 billion year-on-year. All other business units continued to improve performance as the firm fast-tracked construction and strengthened operations. These resulted in higher percentage of completion, paving the way for more units to qualify for revenue collection. Gross profit margin was maintained at a healthy 45 percent as the company strongly mitigated inflationary pressures while sustaining 100 percent of its construction operations.

CLI’s economic housing brand Casa Mira accounted for the largest share of H1 2022 revenues indicative of the significant housing backlog in key VisMin cities. A hefty 40 percent of H1 2022 revenues came from Cebu; with Davao following at 16 percent; Cagayan de Oro, 15 percent; Iloilo, 12 percent; and the balance from Ormoc, Bacolod, Dumaguete and Bohol. With CLI’s portfolio now encompassing over 15 key VisMin locations, the company sees increased contributions from its new expansion areas in the coming quarters.

The listed firm’s first-half leasing business expanded by 20 percent year-on-year as both office demand and retail foot traffic saw a healthy rebound especially in Cebu. With heightened tourism activity accompanied by increased mobility in VisMin, CLI’s hospitality business registered a 271-percent growth as occupancy rates significantly improved.

CLI’s capital expenditures rose by 42 percent to P5.5 billion from last year’s P3.88 billion, with most of the amount earmarked for project development, while 22 percent was spent on land banking including the purchase of a 17-hectare expansion site in Butuan City. CLI is also gearing up for its large-scale townships in Davao, Cagayan de Oro and Minglanilla in Cebu as these are now moving strongly at different stages of development.

Davao Global Township (DGT), envisioned to be the premier central business district in Davao, was recently inaugurated with the site development completion of the 23-hectare estate. The company also announced that limited commercial lots were being made available for sale to select developers and investors in the estate, awarded as Best Township in Asia 2021 by PropertyGuru Asia Property Awards. The first four towers of The East Village at DGT, the township’s first residential offering, is now 90 percent sold in only four months since its March 2022 launch date.

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Boosting these positive developments was CLI’s announcement that it would increase its retail bonds offering to P8 billion from P5 billion and a P3-billion oversubscription. Strong interest from institutional buyers prodded the move. Meanwhile, the maiden retail bonds of CLI was rated PRS Aa plus with stable outlook by PhilRatings on the back of sound management and strategy with a sustained competitive advantage in the Visayas and Mindanao markets.

Jose Soberano III, CLI chairman and CEO, disclosed: “We are on track to achieve another record year and there are several strong indicators for CLI to achieve its growth guidance of 20 percent this year. With our expanding portfolio and with our operations tailored to provide the strongest ‘ground game’ in the region, CLI is best-positioned to address the growing housing backlog while extending best-in-class turnaround times and customer service.”

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The article was originally published in Business Mirror.

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