Corporate News

Cebu Landmasters on track to surpass full-year profit guidance

Posted on August 10, 2017

EARNINGS of Cebu Landmasters, Inc. soared 164% in the first half of 2017, following the brisk take-up of its properties for the period.

In a presentation to analysts on Wednesday, the listed property developer said its net income for the January to June period stood at P634 million, higher than the P240 million it realized in the same period last year.

The stellar profit growth was attributed to the 107% climb in first-half revenues to P1.807 billion. The bulk of revenues came from its real estate business at P1.78 billion, while leasing income accounted for only P19 million.

Reservation sales, meanwhile, surged 155% to P2.8 billion, almost surpassing its full-year 2016 figure of P2.946 billion.

With the strong first-half results, Cebu Landmasters said it is on track to breach its 2017 profit guidance of P1.2 billion.

“We’re proud to be a homegrown VisMin brand that has captured the needs and preferences of our target market as reflected in the sales velocity of our developments. We have also leveraged on our deep relations with our business partners and suppliers to ensure that our constructions progress as scheduled,” CLI Chief Executive Officer Jose Soberano III was quoted as saying in a statement.

The Cebu-based firm benefited from P7 billion worth of projects launched in the six-month period. It has a pipeline of projects worth P10.61 billion expected to be launched in the second half. Among the eight projects set to be launched before end 2017 is the AS Fortuna in Cebu City, which will offer 467 residential units and 158 hotel units in addition to 10,000 square meters (sq.m.) of retail space.

CLI currently has 42 developments consisting of 16,006 units worth P45.03 billion in various stages of construction. Majority of the firm’s projects are residential condominium units at 52%, followed by residential subdivisions at 26%. These developments serve all income segments, from socialized housing to the high-end market.

Commercial projects, meanwhile, make up 16%, while hotels contribute 6% to its business. The company is ramping up its commercial and hotel portfolio, with seven mixed-use projects now under construction that will have retail, hotel, and office components.

The company has been able to fast track its expansion in the Visayas and Mindanao regions after raising P2.02 billion during its maiden listing at the Philippine Stock Exchange last June 2. It has since spent 16.4% or P312.58 million of the initial public offer proceeds from the purchase of various land acquisitions and joint ventures.

Shares in CLI added 14 centavos or 3% to close at P4.8 each on Wednesday. -- Arra B. Francia