CEBU Landmasters, Inc. (CLI) is on track to meet its 20% net income growth target this year, after recording strong earnings in the first quarter.
“We’re optimistic we can meet this target and with grace and luck, we can outperform it,” CLI Chief Finance Officer Beauregard Grant L. Cheng said in an investors’ and analysts’ briefing on Monday.
In 2021, CLI recorded a P2.61 billion net income.
For the first quarter of 2022, CLI reported a 14% rise in net income to P811 million. Excluding the impact of the one-time tax benefit from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, the company said its net income increased by 62% year on year.
Revenues jumped by 53% to P3.56 billion in the January to March period, fueled by strong real estate sales.
CLI said sales take-up rose by 36% to P4.5 billion in the quarter ending January, driven by new project launches.
A major contributor to the robust sales growth was The East Village, the first residential project of CLI’s Davao Global Township (DGT). The Cebu-based developer said the first three towers were sold out in four days, with sales of P4 billion. A fourth tower is being launched within the second quarter.
Other projects launched in the first quarter included Astra Corporate Center in Cebu and new phases of Velmiro Greens Bohol and Casa Mira Homes Dumaguete
These are part of the pipeline of 15 projects worth P22 billion to be launched within the year.
“This is where investors and analysts really appreciated how prepared we are. We planned for this two years ago,” CLI Chief Operating Officer and Executive Vice-President Jose Franco B. Soberano said in a virtual briefing.
These projects include Casa Mira Homes Davao, Calle 104 Tower 1 and 2, Mandtra Residences Tower 2, Casa Mira Towers (CMT) Mandaue Tower 1, Costa Mira Beachtown Mactan Tower 3, Velmiro Heights Davao, CMT Palawan Tower 1 and 2, Costa Mira Beachtown Panglao Tower 1 and 2, and DGT lot sales.
“We have a lot of very exciting projects. I believe in the second half of the year we will see renewed interest in real estate products. We’re very proud of the expansions we have, it is diverse in economic positioning,” Mr. Soberano added.
He said that the company will continue to expand, from residential, offices, hotels, mixed-use developments, and townships.
“A lot of construction is going on, and this is where we like to say we are very focused. [As] we’re now moving towards the end of the second quarter, momentum is strong. We are looking at a very strong year ahead,” he said.
The company continues to beef up its landbank, which stood at 104 hectares, with a value of P12.3 billion as of the first quarter. There are still 60 hectares currently under negotiation.
Mr. Soberano said the company spent P2.6 billion on capital expenditure in the first quarter, with around 50% allocated for property development.
The company set aside P13 billion for capital spending this year. — with Luisa Maria Jacinta C. Jocson
Published in BusinessWorld