Cebu Landmasters net income up 42% to Php 2.61 billion,surpassing pre-pandemic performance by 30%

Leading developer in VisMin Cebu Landmasters, Inc. (CLI) announced a record Php 2.61 billion net income attributable to CLI shareholders in 2021, up by 42% from 2020’s Php 1.85 billion. With its 2021 results, the company has effectively surged past its 2019 pre-pandemic bottomline by 30%.

CLI chairman and CEO Jose Soberano III said that the company’s 2021 performance exceeded its targets for the year and “puts us in a position to pick up from where we left off pre-COVID.”  In 2019, CLI’s NIAT registered at Php 2 billion.

CLI’s topline grew by 35% to Php 11.16 billion from 2020’s Php 8.3 billion driven by significant construction accomplishments and robust sales, which have further resulted in a Php25 billion or 23% increase in unrecognized revenue for future recognition.

Sales also hit a record Php 16.5 billion in 2021, 16% more than the previous year. This was on account of solid housing demand in the Visayas and Mindanao particularly in the economic and mid-income segments. CLI’s 10 residential launches generated Php 18 billion in sales value.

The listed company’s economic housing brand Casa Mira generated the highest sales performance, taking 41% of total sales in 2021. This was followed by mid-market developments at 27% and high-end projects at 31%. Beyond economic housing, CLI projects that fared well were Terranza Residences in Iloilo City, 82% sold by end-2021; and CLI’s first resort living complex Costa Mira Beachtown Mactan, 92% sold out within a week from launch.

By the end of 2021, construction was in full-swing across all project sites in 16 key cities in VisMin and catch-up measures had been put in place to compensate for delays caused by quarantine restrictions. A major investment now progressing as planned is Masters Tower Cebu which will generate 10,500 sqm. of GLA and also incorporates Sofitel Cebu City’s 195 rooms. Another anchor project is the 125-room Abaca Resort Mactan, a luxury hotel designed to be among Cebu’s premier hotel destinations. CLI has 1 operating hotel with 7 other brands under different stages of construction. This will deliver a total of 1,775 keys to CLI’s growing hospitality portfolio by 2025.

Meanwhile, rentals have increased by 35% year-on-year following the completion of and signing of new leases in the 5-star BERDE-certified green building Latitude Corporate Center in Cebu Business Park. Overall, GLA has doubled to 29,000 sqm. and will be expanded over 50,000 sqm. upon completion of a number of projects within two years.

To ensure its growth momentum, CLI acquired 41 hectares in 2021, bringing the total landbank to over 100 hectares worth Php 12 billion. Another 70 hectares are in the last stages of negotiations. The listed firm drew from its Php 10 billion capex to fund fresh landbank.

In 2022, it has 21 projects in the pipeline for launching including a new site in Palawan. CLI kicked off Q1 2022 with The East Village at DGT, the first residential community of Davao Global Township (DGT) which sold out in four days. It also began construction of Casa Mira Towers Bacolod which sold 73% of its first tower in a month after introduction.

Sales and development will be anchored for the balance of the year by DGT, CLI’s first estate envisioned to transform the 22-ha. Davao Golf Course in Matina, Davao City, into an iconic business district at par with other business districts in Southeast Asia. The first phase of development includes the construction of a lifestyle mall and a cultural center designed to create synergies with The East Village residences. DGT was recently awarded as the Best Township in Asia by PropertyGuru Asia Property Awards.

CLI declared a regular cash dividend of Php 0.112 per share last March 15. Because of the company’s outstanding performance, the Board also approved a special cash dividend of Php 0.038 per share to shareholders of record as of April 22, 2022. Payment date will be on May 17, 2022.

Soberano observed: “We are very pleased that CLI’s strong foundations – from planning to execution – withstood the challenges presented by the pandemic. We look forward to the rest of the year with fresh plans and optimism that will propel us in this new normal.”