CLI posts P1.854B nine-month net income, strengthens its leadership in VisMin region

CEBU CITY-- Cebu Landmasters Inc. (CLI) a leading developer in VisMin posted a net income of P1.854B in the first nine months of 2021 surpassing its full-year 2020 figure of P1.845 billion.

“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. We will continue to meet this need and to earn the trust of VisMin homeowners moving forward,” CLI chairman and Chief Executive Officer Jose Soberano III said during the virtual CLI investors briefing on November 12.

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 9M 2020. As of end September 77percent of 2021 launches were already sold out, Soberano bared.

Robust sales and rapid construction progress, due to sites operating fully at 100 percent raised consolidated revenues year-on-year by 34 percent from P5.7 billion to P7.7 billion.  Meanwhile, 9-month net income grew strongly by 23 percent year-on year to P1.854 billion from 2020’s P1.5 billion.

CLI’s performance according to Soberano was driven by real estate revenues of P7.7 billion, a 34 percent increase from the same period last year, with projects cutting across key market segments.

The bulk or 44 percent of the 3^rd quarter revenue 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, Soberano added.

Soberano went on that Cebu, the biggest metropolis in the VisMin region was the source of 59 percent of revenues. CLI also reflected strong and growing sales in other key cities including Cagayan de Oro, which took credit for 10 percent; Bacolod, 10 percent; Iloilo, 10 percent; all others at 11 percent.

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.

According to CLI’s presentation Friday that the more favorable economic conditions in VisMin its 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 that is expected to open 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. The listed company 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 said that spending is expected to increase since project development has already started at the 100-hectare Minglanilla Techno Business Park (Ming-Mori).  Ming-Mori is projected to boost the firm’s growth exponentially by generating close to P200 million in annual leasing revenue.

CLI has an 80 percent stake in this ambitious reclamation project, the company’s second estate development next to Davao Global Township in Davao and followed by Masterson Town in CDO.

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.

“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,” Soberano said.

CLI was recently awarded as the Best Developer in Visayas and in Mindanao by PropertyGuru Philippines Property Awards 2021, which were never-before-presented developer titles by the prestigious award-giving body. The firm was also awarded as the Fastest Growing Developer in the Philippines by the International Finance Awards 2021.

The accolades cement the listed company’s leadership in the region.  Meanwhile, the company has strengthened its organization by ensuring that close to 100 percent of its employees have been fully vaccinated and by donating tenement housin
g projects in Cebu City and Mandaue City in collaboration with the Department of Human Settlements and Urban Development. (Photos: CLI/Google Images)