Leading developer in VisMin Cebu Landmasters Inc. (CLI) recorded a robust surge in its consolidated net income in the first half of 2023, rising 32% to P2.1 billion from P1.6 billion in the previous year.
The listed company’s net income to parent also drove a solid 9% increase to P1.68 billion from P1.55 billion in H1 2022. The growth in earnings was due to the solid results across all revenue streams pushing CLI’s consolidated revenue to increase by 23% to P9.15 billion, up from P7.36 billion last year. This is supported by higher construction progress and take-up of new launches that also led to the highest first-half reservation sales figure in the company's history.
“Residential demand continues to heavily outweigh supply in the Visayas and Mindanao regions, especially in the middle-market and economic segments which comprised the bulk of our launches. CLI remains to be at the forefront of the action, while maintaining a strong financial and operational discipline in order to healthily sustain the company’s growth. This is the CLI way,” CLI chairman and CEO Jose Soberano III said.
The company’s rental revenues also grew 41% to P50 million, attributable to strategic rental increases and higher occupancy. Travel and leisure sector resurgence, meanwhile, propelled CLI’s hotel operations to achieve a robust 74% growth, fueled by an increase in bookings and higher room rates of Citadines Cebu City. The listed company is expected to grow its recurring income with three more hotels opening within the year, with the openings of lyf Cebu City, Citadines Bacolod City and CLI’s first co-living brand The Pad Co-Living in Banilad Cebu City.
Revenue from management fees of CLI Property Management Inc. (CLIPM) — the company’s property management arm established to maintain the CLI brand quality for every completed project — also increased by 26% to P31 million from the 28 completed projects it handled during the period.
During the first half of the year, CLI launched six projects worth P13.5 billion. This includes Casa Mira Towers Palawan’s fourth tower after the successful sale of its first three towers, Costa Mira Beachtown Panglao’s third tower after its first two sold out last year, and the company’s first house and lot project in Davao – Casa Mira Homes Davao. This fresh supply of inventory, particularly on the strong demand for the company’s award-winning Casa Mira brand bolstered CLI to register its highest H1 reservation sales figure in the company’s history, rising by 36% to P10.5 billion during the period.
Reservation sales came the strongest from Davao, comprising 35% of the total for the period. The listed company opened its first house and lot project in Davao last June, which reached close to 80% sales in just 3 days. Meanwhile, the other 31% of reservation sales came from its Cebu operations. Bohol produced 15%, Bacolod and Palawan combined for 8%, and the rest came from other cities like Iloilo and Dumaguete.
The company’s capital expenditures for year to date amounted to P5 billion, of which, 79% was spent on residential development, 12% paid for land acquisitions, and 9% for investment property. CLI is launching its residential project in Butuan within the year and is expanding in Mindanao by recently acquiring 21 hectares in General Santos City.
CLI is now in 16 key cities in VisMin, serving strong and stable housing demand in the region.
"With the remarkable results we've attained in the opening half of 2023, CLI is confidently progressing towards its outlined objectives, including the much-awaited strategic expansion in Luzon," Soberano highlighted.
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