Leading Visayas-Mindanao developer Cebu Landmasters, Inc. (CLI) reported P3.56 billion in first quarter revenues, 53% higher than the P2.3 billion in the same period in 2021. The strong growth is underpinned by all of its businesses registering stellar performance.
The surge in revenues was driven by real estate sales from a number of projects that have been steadily increasing over the years, the company said in a press statement. These have resulted in greater construction progress and consequently, higher revenue recognition. Construction was in progress due to catch-up measures during the pandemic and is now in full swing in the listed company’s 15 VisMin sites.
Sales takeup also surged to P4.5 billion or 36% more than Q1 2021’s P3.3 billion. The biggest contributor was The East Village, the first residential project of CLI’s Davao Global Township (DGT), named as the Best Township in Asia by PropertyGuru Asia Property Awards in 2021. Three of the residential community’s six towers sold out in four days, prompting the launch of the fourth tower in Q2 2022.
CLI’s rental revenues improved by 28% and are attributable to increases in lease contracts and new tenants in the newly completed Latitude Corporate Center. Hotel revenue grew fourfold with the reopening of local and international borders, reviving trade and tourism. Meanwhile, CLI’s property management arm posted a 34% hike in management fees from newly completed projects.
This strong performance would contribute to a 62% net income growth from core operations if the Q1 2021 tax windfall were to be factored out. CLI clarified that earnings of Php806 million from Php714 million or 14% over the same period are recorded when the CREATE law facilitated one-time tax benefits for the firm.
“We are pleased that we began the year strong with robust sales and swift construction pick up of new projects,” said CLI chairman and chief executive officer Jose Soberano III. “We are on track to hit our growth target of at least 20%. We remain ready to make the most of opportunities presented by the fast-recovering VisMin economy.”
CLI also launched in Q1 2022 Astra Corporate Center in Cebu and new phases of Velmiro Plains Bohol and Casa Mira Dumaguete.
CLI has sold out 89% of all its projects in the various stages of development across VisMin. Completed projects are 96% sold out; ongoing developments, 86% sold out; and those launched in Q1 2022, 80% sold out.
CLI is also expected to collect over P12 billion take out value from strong turnover of newly completed projects such as MesaTierra Garden Residences in Davao, Latitude Corporate Center and 38 Park Avenue in Cebu, MesaVerte Residences and Velmiro Heights CDO in Cagayan de Oro and MesaVirre Garden Residences in Bacolod.
The company’s 121-hectare high-value landbank will ensure CLI’s sustainable performance in the next few years. CLI has set aside P13 billion for capital expenditures to fund new purchases and other expenses, of which P2.6 billion was spent in Q1 including P500 million for landbank.