Cebu Landmasters net income soars to record-high Php 3.17-B in 2022, eyes Luzon expansion

• CLI hit an all-time high net income of Php 3.17 billion (normalized), up 32% from the previous year
• With earnings growth across all revenue sources, CLI stepped up its capital spending by 13% to Php 11 billion for property development and land acquisition 
• CLI’s flagship economic brand Casa Mira accounted for the largest share of revenues at 47% 
• By location, CLI’s operations in Cebu drove its earnings, representing 42% of total revenues 
• Sales velocity of newly-launched properties hit peak levels with most developments fully taken up within days, proving strong demand and interest ahead for VisMin real estate development

Leading developer in VisMin Cebu Landmasters, Inc. (CLI) reported another record year-end performance with a 32%-growth to Php 3.171 billion in normalized net income to parent shareholders in 2022. The normalized net income took out a one-time tax adjustment due to the CREATE law. 

The listed company also registered a double-digit profit growth of 21% from its 2021 NIAT of Php 2.6 billion, even after the adjustment. 

Significant milestones, strong sales, and outstanding collections pushed CLI’s topline to grow by 40% to Php 15.657 billion in 2022, up from Php 11.162 billion in the previous year. Despite the surge in CLI’s topline, its unrecognized revenue for future recognition still stood at Php 29 billion. 

“Our robust 2022 performance is a testament to our growing commitment and leadership in the Vismin region. We have been recording double-digit growth across all segments since our 2017 IPO. We are finally setting our sights on Luzon in the next 2 years,” CLI chairman and CEO Jose R. Soberano III said. 

Real estate sales revenue recorded a 40% year-on-year (YoY) growth to Php 15.439 billion in 2022 from Php 10.996 billion in the previous year. This was mainly driven by significant construction progress, as construction hit full swing across all CLI project sites in 16 key cities in VisMin by end-2022. 

CLI launched close to 5,000 units across 16 projects, worth Php 19.36 billion collectively, which was 74%-sold by the end of 2022. Sales velocity of these launches hit peak levels with most developments fully taken up within days. 

CLI’s first project in a new area, Puerto Princesa, for instance, was 85%-sold out in less than a week. 

The listed company also posted a 71% growth in hotel revenues to Php 83 million in 2022, while revenues from rental units also improved with a 7%-growth to Php 79.28 million from Php 74.27 million in 2021 on increased lease contracts and new tenants from the recently-completed Latitude Corporate Center. 

CLI’s flagship economic brand Casa Mira accounted for the largest share of revenues at 47%, followed by the mid-market Garden Series contributing 27%, and the high-end Premier Masters at 24%. The mix of revenue recorded during the year was brought about by the strong Casa Mira sales during the height of the pandemic in 2020. 

After a strong end-2022 performance, CLI has its eyes set on continued expansion for 2023 on the back of optimism for strong economic growth and property demand in the VisMin region. In CLI’s pipeline are Php 29.75 billion worth of projects expected to drive reservations sales during the year. The company is also setting its sights on a Luzon entry with a landbank build up that will begin this year.

CLI will also open three hospitality projects this year: The Pad, lyf Cebu City at Base Line Center, and Citadines Bacolod City. The listed company also targets a substantial growth in its leasing business, with an addition of 4,000 sqm worth of gross leasable area (GLA) largely from Davao Global Township retail pads and convention center. 

With a robust performance and bright prospects ahead, the CLI Board earlier declared regular and special cash dividends of Php 0.15 and Php 0.03 per share at a total estimated amount of Php 624 million, up 20%-increase from the Php 520 million paid to stockholders last year. The recently declared dividends have a record date of April 18, 2023 and will be paid on April 28, 2023.