Leading Visayas-Mindanao developer Cebu Landmasters Inc. (CLI) disclosed today consolidated revenues
of Php 5.7 billion and net income to parent of Php 1.5 billion for the first nine months of 2020, closely
resembling its pre-pandemic 2019 performance.
Consolidated revenues dipped slightly by four percent year-on-year, but still outperformed the industry
due to robust real estate sales of Php 5.56 billion for the period. Q3 revenues surged to Php 2.2 billion,
57 percent hike quarter-on-quarter, as quarantine restrictions eased in key VisMin cities driving CLI
construction efficiency to 90 percent from the previous quarter’s 70 percent. Moreover, collections
improved with 500 more accounts qualifying for higher revenue recognition.
Continued expansion in VisMin
Earlier in the year, the listed firm secured its uninterrupted expansion by launching five residential
projects with high sales velocity valued at Php 5.5 billion, while expanding to new areas in VisMin
despite the pandemic. Expansion areas include Iloilo, and the underserved areas of Bohol and Ormoc.
Consequently, reservation sales for the first nine months increased by 14 percent year-on-year to Php
The boost in reservation sales translates to Php 17.9 billion in unrecognized revenues, or an 18 percent
increase, and sustained earnings in the near future.
Franco Soberano, CLI executive vice-president and chief operating officer, remarked: “We are pleased to
serve new residential homeseekers in VisMin, where demand for residential housing has proven to be a
bright spot in the region’s economy. There has been sustained demand from both local and OFW
buyers, which has enabled CLI to surpass our reservation sales performance in 2019. The housing
backlog has never been more pronounced than now due to the pandemic, and it’s our shared
responsibility to address this backlog as best we can.”
Soberano added that in the last quarter of 2020, CLI expects stronger OFW inflows and general
consumer outlook in VisMin to bounce back as local businesses reboot operations. He also expects
Business Process Outsourcing (BPO) firms to continue expanding in the region as the global economic
Sustained and stable recurring business
CLI’s recurring business, spearheaded by Citadines Cebu City, has benefited from the continued
expansion of BPOs to the Visayas. The serviced residence located close to Cebu City’s business districts
maintained an average occupancy of 67 percent during the first nine months as it catered to BPO
companies that housed their employees during the lockdown and returning OFWs. It has continued
operations until present because of its sustained demand
and occupancy rate. Launched in September 2019, Citadines
Cebu City posted a revenue of Php 49.3 million in the first nine months in 2020.
The company’s gross leasable area will grow to 28,000 sqm. with the turnover of its four-star BERDE
rated office building, Latitude Corporate Center, in the fourth quarter of this year. Its current leasing
portfolio encompassing 15,000 sqm. of leasable space is 86.8 percent occupied. Nevertheless, lease
revenue posted a slight five percent decline owing largely to rental concessions offered by CLI to tenants
struggling with business disruptions due to the pandemic.
Total assets breach billion-dollar mark
In the meantime, CLI reported that its total asset has breached the billion-dollar mark at Php 49 billion.
The company will continue to build its assets starting with the groundwork of an iconic Php 3 billion
tower at the Cebu Business Park with an estimated floor area of 44,000 sqm. The mixed-use
development with office, retail and a 195-room, five-star hotel is set for completion in 2024.
This project will allow the firm to maximize opportunities in tourism and the BPO industry which have
been forecasted to make strong rebounds in the post-pandemic period especially by the time the
development is operational.
Partner financing institutions
Meanwhile, Cebu Landmasters will continue to collaborate with its partner financing institutions
collectively accountable for the company’s Php 42 billion approved bank lines. Only Php 23.7 billion has
been drawn to date. The company has also fully subscribed its Php 8 billion corporate notes at favorable
rates, with average cost of borrowing at 4.15 percent ensuring its liquidity.
In the near term, the continued turnover of CLI residential projects will secure the firm’s footing moving
forward. CLI was able to continue turnover of projects during this period, including the three-tower
MesaVerte Garden Residences with 700 units in Cagayan de Oro; Mivesa Garden Residences Tower 6
and 7 with 576 units in Cebu City; Base Line Premier with 379 in Cebu City; and more than 1,700 units of
Casa Mira South phases 1 and 2 in Naga-San Fernando, Cebu. These project completions will generate a
total of Php 5.8 billion worth of future cash inflows and secure income streams for CLI. ###