Cebu Landmasters sustains growth momentum with record 1.55B H1 Net Income, up 40% yoy

On the back of strong sales and project completions, leading VisMin developer Cebu Landmasters, Inc. (CLI) achieved its highest H1 net income performance of Php1.55 billion, an increase of 40% versus H1 2021. Without the adjustment from CREATE law, CLI grew its earnings attributable to parent by 18% from the reported Php 1.1 billion of the same period last year.

Real estate sales also grew by a robust 45% from Php5 billion to Php7.36 billion year on year. All other business units continued to improve performance as the firm fast-tracked construction and strengthened operations. These resulted in higher percentage of completion, paving the way for more units to qualify for revenue collection. Gross profit margin was maintained at a healthy 45% as the company strongly mitigated inflationary pressures while sustaining 100% of its construction operations.

CLI’s economic housing brand Casa Mira accounted for the largest share of H1 2022 revenues indicative of the significant housing backlog in key VisMin cities. A hefty 40% of H1 2022 revenues came from Cebu; with Davao following at 16%; Cagayan de Oro, 15%; Iloilo, 12%; and the balance from Ormoc, Bacolod, Dumaguete and Bohol. With CLI’s portfolio now encompassing over 15 key VisMin locations, the company sees increased contributions from its new expansion areas in the coming quarters. 

The listed firm’s first-half leasing business expanded by 20% year-on-year as both office demand and retail foot traffic saw a healthy rebound, especially in Cebu. With heightened tourism activity accompanied by increased mobility in Vismin, CLI’s hospitality business registered a 271% growth as occupancy rates significantly improved.

CLI’s capital expenditures rose by 42% to Php5.5 billion from last year’s Php3.88 billion, with most of the amount earmarked for project development while 22% was spent on land banking including the purchase of a 17-hectare expansion site in Butuan City. CLI is also gearing up for its large-scale townships in Davao, Cagayan de Oro and Minglanilla in Cebu as these are now moving strongly at different stages of development. 

Davao Global Township (DGT), envisioned to be the premier central business district in Davao, was recently inaugurated with the site development completion of the 23-hectare estate. The company also announced that limited commercial lots were being made available for sale to select developers and investors in the estate, awarded as Best Township in Asia 2021 by PropertyGuru Asia Property Awards. The first 4 towers of The East Village at DGT, the township’s first residential offering, is now 90% sold in only 4 months since its March 2022 launch date.

These positive developments were further reinforced by CLI’s announcement that it would increase its retail bonds offering to Php8 billion from Php5 billion and a Php3 billion oversubscription. Strong interest from institutional buyers prodded the move. Meanwhile, the maiden retail bonds of CLI was rated PRS Aa plus with stable outlook by PhilRatings on the back of sound management and strategy with a sustained competitive advantage in the Visayas and Mindanao markets.

Jose Soberano III, CLI chairman and CEO, disclosed: “We are on track to achieve another record year and there are several strong indicators for CLI to achieve its growth guidance of 20% this year. With our expanding portfolio and with our operations tailored to provide the strongest ‘ground game’ in the region, CLI is best-positioned to address the growing housing backlog while extending best-in-class turnaround times and customer service.”