Leading developer in VisMin Cebu Landmasters Inc. (CLI) disclosed its exceptional 3Q 2021 performance highlighted by a net income of ₱1.854 billion in the first nine months of 2021, which has effectively surpassed its full-year 2020 figure of ₱1.845 billion.
CLI posts record ₱1.854 billion nine-month net income, surpassing full-year 2020 performance
Robust sales and rapid construction progress, due to sites operating fully at 100%, raised consolidated revenues year-on-year by 34% from ₱5.7 billion to ₱7.7 billion. Meanwhile, 9-month net income grew strongly by 23% year-on-year to ₱P1.854 billion from 2020’s ₱1.5 billion.
CLI’s remarkable performance was driven by real estate revenues of ₱7.7 billion, a 34% increase from the same period last year, with projects cutting across key market segments. The bulk or 44% of 3Q revenue was contributed by CLI’s popular housing brand Casa Mira, with the fast-selling mid-market Garden Series accounting for 30%, and the top-end Premier Masters contributing 24%.
Cebu, the biggest metropolis in the VisMin region, was the source of 59% of revenues. CLI also reflected strong and growing sales in other key cities namely: Cagayan de Oro, which took credit for 10%; Bacolod, 10%; Iloilo, 10%; all others, 11%.
CLI chairman and Chief Executive Officer Jose Soberano III observed, “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.”
The company’s growth momentum in 2021 was sped up by seven projects collectively worth ₱12 billion, or significantly more than the ₱5.5 billion value of launches recorded in 9M 2020. As of the end of September, 77% of 2021 launches were already sold out.
From another perspective, CLI has already sold out 90% of its inventory across all projects in different stages of development allowing the firm to record unrecognized revenue of ₱24.2 billion, up 19% from ₱20.6 billion as of the end of 2020.
The more favorable economic conditions in VisMin, CLI’s geographic scope, were recently affirmed by an uptick in the 180 rooms turned over in Citadines Cebu City. The hotel was able to record occupancy of 90% for the month of September. The next CLI hotels to be completed are lyf Cebu City (opening 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% increase in leasing revenue year on year.
CLI has invested ₱8.7 billion in capital expenditures this year with acquisitions for new land amounting to ₱1.2 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.
Spending is expected to increase since project development has already commenced 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 ₱200 million in annual leasing revenue. CLI has an 80% 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% to 20% growth guidance in 2021 and in the next 2 to 5 years,” said Soberano.
Meanwhile, the company has strengthened its organization by ensuring that close to 100% of its employees have been fully vaccinated and by donating tenement housing projects in Cebu City and Mandaue City in collaboration with the Department of Human Settlements and Urban Development.
CLI was recently awarded as the Best Developer in the Visayas and in Mindanao by PropertyGuru Philippines Property Awards 2021, which were never-before-presented developer titles by the prestigious award-giving body. The accolades cement the listed company’s leadership in the region. The firm was also awarded as the Fastest Growing Developer in the Philippines by the International Finance Awards 2021.
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