Cebu Landmasters’ posts record high 9-month earnings, up by 77 percent to P1.6 billion

BUSINESS
November 15, 2019

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Cebu Landmasters (CLI) continues its leadership in the VisMin region, with consolidated net income rising by 59 percent from Php 1.2 billion to Php 1.9 billion year-on-year. Net income attributable to parent meanwhile grew significantly by 77 percent from Php 932.7 million to Php 1.65 million driven by substantial increase of revenue from CLI projects.

The leading housing developer in the Visayas-Mindanao region declared revenues of Php 5.9 billion from the previous year’s record of Php 3.7 billion.

CLI attributed the outstanding results to the strong performance of its mid-market residential segment, which accounted for 36 percent of the total revenue pie. Casa Mira, the company’s economic residential brand, and high-end segment contributed 32 percent and 29 percent, respectively.

CLI Chief Executive Officer Jose Soberano III says: “Our fast-selling projects give us confidence that we will achieve our topline and net income growth targets for the end of the year. The numbers reflect our operational excellence and commitment to responsible development.”

CLI launched nine major developments in 2019: Davao Global Township – Phase 1 (Davao); One Paragon Place (Davao), Citadines Paragon Davao (Davao); Citadines Bacolod City (Bacolod); MesaVirre Garden Residences C (Bacolod); Casa Mira Bacolod (Bacolod); Velmiro Plains Bacolod (Bacolod); Casa Mira Towers CDO (CDO); and Mivela Garden Residences (Cebu). CLI said the Mivela project set new records with 80 percent of the project sold in just three weeks from launch date.

Projects in the company’s headquarters in Cebu made up 58 percent of the period’s revenue contributors, followed by developments in Bacolod and Cagayan de Oro with 13% and 12% earnings input, respectively. In Q3 2018, revenue contributors after Cebu (with 61% revenue contribution) were Cagayan de Oro with 19 percent and Davao with 14 percent.

CLI’s leasing portfolio grew by 29 percent to Php 46.72 million from Php 36.20 million year-on-year. This is attributed to the increase in Gross Leasable Area (GLA) following the recent turnover of Base Line Retail and HQ and Casa Mira Towers Labangon. Aggregate GLA for the period now reached 13,806 square meters while occupancy rate rises to 84%.

Management fees on the other hand, more than doubled from 11.2 million to 26.9 million due to the increase of the number of developments managed by CLIPM, the property management arm of CLI. The said firm now oversees 17 projects, eight of which are house and lot subdivisions while the rest are offices and residential condominiums.

The third quarter also marked the operations of CLI’s first hotel representing a new revenue stream. As scheduled, Citadines Cebu City, a 180-room condotel opened in September. It is operated and managed by Ascott Limited, the world’s largest international serviced residence owner-operator.

As an indicator of future revenue growth, the nine-month reservation sales take-up rose by 29% year on year to P9.24 billion. About 3,472 units were taken up at an average price of Php 2.7million.

Meanwhile, CLI continues to expand its landbank to support its expansion program. To date, CLI holds a total of 1,245,276 sqm of land in 10 key VisMin cities. Part of its recent acquisitions is an existing resort in Mactan, Cebu with a land area of 18,000 sqm. The resort will be re-developed to also integrate a residential component.

 

CLI purchased a 9.4-hectare property in Ormoc and 28 hectares in Davao that will be developed into residential projects. The company also acquired 11,000 sqm of land in Bacolod City, adjacent to its existing three-tower condo project, the MesaVirre Garden Residences. During the year, CLI also signed a strategic partnership with AboitizLand, the real estate arm of Aboitiz Equity Ventures, to develop a mid- market, mixed-use, multi-tower condominium project in Mandaue City.

During the 7th Annual Property Guru Philippines Property Awards last July, Cebu Landmasters was awarded as the Best Developer. Other honors were also given to the company’s projects—38 Park Avenue development, named Best High-End Condominium Development (Cebu); Casa Mira Towers Labangon as Highly Commended for Best Affordable Condominium Development (Cebu); and MesaTierra Garden Residences as Best Condominium Development (Davao)and special recognition for Corporate Social Responsibility.


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