Cebu Landmasters reports highest net profit of ₧1.55-B H1, up 40% YoY
VisMin’s main developer, Cebu Landmasters Inc. (CLI), achieved its highest net profit in the first half of 1.55 billion pesos, an increase of 40% compared to the first half of 2021, thanks to strong sales and project completion.
Without the CREATE law adjustment, CLI increased its profits attributable to the parent company by 18% from the 1.1 billion pesos reported in the same period last year.
Real estate sales also increased by 45%, from 5 billion pesos to 7.36 billion pesos year-on-year. All other business units continued to improve their performance as the company ramped up construction and strengthened operations. These resulted in a higher completion percentage, paving the way for more units to qualify for revenue collection. Gross profit margin was maintained at a healthy 45% as the company significantly mitigated inflationary pressures while maintaining 100% of its construction operations.
CLI’s budget housing brand, Casa Mira, accounted for the largest revenue share in the first half of 2022, indicating the large backlog of housing in VisMin’s key cities. 40% of H1 2022 revenue came from Cebu; with Davao following at 16%; Cagayan de Oro, 15%; Iloilo, 12%; and the rest of Ormoc, Bacolod, Dumaguete and Bohol. With CLI’s portfolio now encompassing more than 15 key VisMin sites, the company is seeing increased contributions from its new expansion areas over the coming quarters.
The listed company’s first-half leasing business was up 20% year-on-year as office demand and retail footfall saw a healthy rebound, particularly in Cebu. With increased tourism activity accompanied by increased mobility at VisMin, CLI’s hotel business grew by 271% as occupancy rates improved significantly.
CLI’s capital expenditure increased by 42% to 5.5 billion pesos from 3.88 billion pesos last year, with most of the amount going to project development, while 22% have been spent on land banking, including the purchase of a 17-hectare expansion site in Butuan. Town. CLI is also gearing up for its large-scale townships in Davao, Cagayan de Oro and Minglanilla in Cebu, as these are now moving heavily in different stages of development.
Davao Global Township (DGT), envisioned to be Davao’s first central business district, was recently inaugurated with the completion of the site development of the 23-hectare estate. The company also announced that limited commercial lots are being offered for sale to select developers and investors in the area, awarded as Asia’s Best Township 2021 by PropertyGuru Asia Property Awards. The first four towers of The East Village at DGT, the township’s premier residential offering, are now 90% sold out in just four months since its launch date in March 2022.
The announcement by CLI to increase its retail bond offering to 8 billion pesos from 5 billion pesos and an oversubscription of 3 billion pesos boosted these positive developments. Strong interest from institutional buyers prompted the move. Meanwhile, CLI’s first retail bonds were rated PRS Aa plus with a stable outlook by PhilRatings thanks to sound management and strategy with a sustainable competitive advantage in the Visayas and Mindanao markets.
Jose Soberano III, Chairman and CEO of CLI, said, “We are on track to deliver another record year and several strong indicators allow CLI to achieve its growth target of 20% this year. With our expanding portfolio and operations designed to provide the strongest “ground game” in the region, CLI is best positioned to address the growing housing backlog while extending turnaround times and service. best-in-class customers.