Cebu Landmasters net income up 32% in first half

Listed Visayas and Mindanao property developer Cebu Landmasters Inc. (CLI) reported on Thursday a 32% increase in its first-half consolidated net income as the company reported a higher take-up of new launches.

In an emailed statement, CLI said its consolidated net income grew to P2.1 billion, while its net income attributable to parent expanded by 9% to P1.68 billion from P1.55 billion in the past year.

Consolidated revenues for the period rose 23% to P9.15 billion from P7.36 billion, which CLI attributed to higher construction progress and take-up of new launches as its reservation sales hit record levels.

Rental revenues grew 41% to P50 million, while hotel operations recorded 74% growth. Management fees from CLI Property Management Inc. also increased 26% to P31 million.

“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 chief executive officer Jose Soberano III said.

“CLI remains at the forefront of the action while maintaining strong financial and operational discipline in order to healthily sustain the company’s growth,” he added.

The company launched six projects worth P13.5 billion in the first half of the year, of which it said it had already sold P10 billion.

Among the pipeline projects for the second half are the P1.5-billion Mindara Residences, the P2-billion East Village, and the P1-billion Velmiro Heights in Davao, along with the P650-million Casa Mira, the P1.4-billion Costa Mira Mactan, and the P1.9-billion Consolacion projects in Cebu.

In May, CLI announced a P13-billion spending program for the year, of which it has already spent some P5 billion, with 79% going to residential development, 12% for land acquisitions, and 9% for investment property.

“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.

The company earlier said it was looking at possible sites in Batangas, Bicol, and Camarines Sur, mostly in the south of Luzon.

Shares in CLI closed Thursday at P2.67 apiece, up 2 centavos or 0.75% from Wednesday’s finish of P2.65. — VBL, GMA Integrated News


Published in GMA News Online

Profit of Cebu Landmasters slides in Q3, but nine-month total nears pre-pandemic level

CEBU LANDMASTERS, Inc. posted an attributable net income of P709.78 million in the third quarter, slowing by 11% from last year but growing more than triple from P219.57 million in the second quarter.

In a regulatory filing, the Cebu-based property developer said it generated total revenues of P2.2 billion in the three-month period, down 10% compared to year-ago levels. But on a quarterly basis, its top line improved 57%.

Year-to-date, Cebu Landmasters’ attributable net income stood at P1.5 billion, down 9% from a year ago. Revenues likewise dipped 4% to P5.71 billion.

In a virtual media briefing on Monday, company officials noted that Cebu Landmasters’ nine-month performance has been moving closer to its pre-pandemic level.

“While Cebu Landmasters was affected just like everyone else in the industry during the pandemic…, we could see that we still performed relatively well. And I think this is due to the unique competitive advantages of Cebu Landmasters as a real estate developer in VisMin,” Beauregard Grant L. Cheng, chief finance officer of the company, said in the briefing.

“Just knowing how to navigate the local regulatory environment here to be able to find ways to continue our construction activities (was a huge help)… Because the fundamental market dynamics have not changed, which is that there is a lot of housing backlog here in VisMin in the market segments that we serve,” he added.

Cebu Landmasters reached record-high sales take-up of P10.5 billion in the nine-month period, exceeding last year’s level by 14%. It is also continuing to build up unrecognized revenues, which hit P17.9 billion or 18% higher than last year.

The company noted its buyer mix has changed in the past months of the pandemic, such that overseas Filipino workers (OFW) were replaced by local buyers.

“Before the pandemic, OFWs accounted for 30-40% of our sales. During the pandemic, that went down to about 20-22%. But if you see the amount of sales and revenue we were able to generate, it actually went up. What this means is they were quickly replaced by locally-employed demand from Philippine-based buyers,” Mr. Cheng said.

Heading into the last weeks of the year, Cebu Landmasters said it is planning launch a few more projects located in Cebu, Davao, Ormoc, Cagayan de Oro, and Dumaguete.

“We are on-track to hit our year-end guidance of plus minus 10% versus last year’s performance. I think this speaks of the strength of Cebu Landmasters in this region,” Jose Franco B. Soberano, chief operating officer, said in the briefing.

Cebu Landmasters booked an attributable net income of P2.01 billion in 2019.

Shares in the company closed at P4.70 apiece on Monday, unchanged from its close in the last session. – Denise A. Valdez, Senior Reporter

Cebu Landmasters starts P12.6-billion Davao projects

MANILA, Philippines — Listed Visayas-Mindanao property developer Cebu Landmasters Inc. ($CLI) kicked off on Friday P12.6 billion worth of projects in Davao City, including a 22-hectare central business district.

CLI and its partner, YHEST Realty and Development Corp., broke ground the first phase of the “Davao Global Township” project located at Matina district.

The P10-billion project — which will feature an office tower, two residential towers, retail buildings, a cineplex mall and a convention center — will yield a gross floor area of 93,000 square meters and is set for completion by end-2022.

CLI also on Friday unveiled the1.9-hectare “Paragon Davao,” a mixed-use destination that will house a 26-storey residential tower, a 263-room hotel, a convention center and a lifestyle mall.

The Paragon Davao’s first phase is estimated to cost P2.6 billion and is expected to be finished in 2022. CLI partnered with Davao Filandia Realty Corp. and Yuson Strategic Holdings Inc. for the project.

“We jointly envision the Davao Global Township to be the premier business district of the city in the medium term,” CLI Chairman Jose Soberano III was quoted as saying in a disclosure to the stock exchange.

“As the city continues to progress, we also see great demand for The Paragon Davao,” Soberano added.

Shares in CLI were up 16 centavos or 4.11 percent to close at P4.05 apiece at the Philippine Stock Exchange on Friday.

Published in PhilStar