Cebu Landmasters Inc., a listed property developer whose home market is in the Visayas and Mindanao, on Tuesday said net profit in the first half rose 24 percent to P1.7 billion on the back of gains from hotel and leasing business, revenue recognition in ongoing projects, and one-off lot sale proceeds.
First half revenue also rose 24 percent to P11.31 billion.
“Cebu Landmasters is poised to sustain this growth trajectory over the next few years with more projects opening in the coming months and as we further expand into new market areas,” said CLI chairman and chief executive officer Jose Soberano III.
Hotel revenue surged with the addition of two new operating hotels in the first half of the year. Alongside the fully operational 180-room Citadines Cebu City, CLI opened the 159-room lyf Cebu City and the 156-room The Pad Co-Living. Hotel revenue streams are expected to grow further with the opening of the 200-room Citadines Bacolod City, the largest hotel in Bacolod, which is now receiving meetings, incentives, conference and exhibitions (MICE) bookings.
CLI’s leasing business saw robust growth of 42 percent, driven by an increase in gross leasable area, now at 40,575 square meters. This growth followed the turnover of new retail areas such as the new wing of Base Line Center, 38 Park Avenue Retail, and Banilad High Street.
The listed property developer has also launched four new projects valued at P8.3 billion in the first half, including Tower 6 of The East Village in Davao, Tower 5 of Casa Mira Towers Palawan, Casa Mira Homes Butuan, and Velmiro Heights Davao.
“There has been steady demand for our residential projects, as evidenced by the rapid market absorption of our newly launched developments,” said Soberano in a statement. “Demand continues to outweigh supply in the VisMin regions, with our projects selling out within days after market introduction, such as Velmiro Heights Davao, which was fully sold out in less than two days after its market introduction. This clearly indicates that we are offering a compelling product priced competitively for the right market,” he added.
CLI said reservation sales in the first half rose 10 percent to P11.6 billion. Around 48 percent of the sales originated from Davao projects, with 66 percent attributed to CLI’s Garden Series targeting the mid-market. CLI achieved a commendable 94 percent sell-out rate across all projects at different development stages: 97 percent for completed projects, 94 percent for ongoing projects, and 81 percent for newly launched projects.
On April 12, CLI raised P4.28 billion through an oversubscribed preferred share offering.
CLI has invested P6.76 billion in capital expenditures, with 67 percent allocated to project development and 19 percent to land acquisition. The company is finalizing negotiations for the acquisition of land to support strategic expansions into established and new markets.
