Cebu Landmasters posts 33% revenue growth in Q1

Leading developer in VisMin Cebu Landmasters, Inc. (CLI) started 2023 on a high note, registering a consolidated revenue growth of 33% in the year’s opening quarter to P4.78 billion from P3.58 billion, according to a report by BusinessMirror.

CLI’s net income to parent saw a 10% year-on-year growth, reaching P888 million, driven by the strong performance across all business units at CLI. On the other hand, Q1 consolidated net income soared to P1.17 billion, 43% higher year-on-year. 

“Our unwavering commitment to excellence at CLI led to double-digit expansions in sales, hotel operations, leasing, and management fees,” CLI senior executive vice-president and chief operating officer Jose Franco Soberano said. “We believe that our remarkable Q1 2023 financial performance sets the tone for the rest of the year, inspiring confidence in our shareholders while reinforcing our position as the leading developer in VisMin and a major contributor to Philippine real estate.”

Revenue from real estate sales grew 33% to P4.71 billion, on the back of the increased number of qualified units for revenue recognition and construction progress. 

Reservation sales take-up reached P5.22 billion, marking a significant 16% YoY growth. The company’s economic flagship brand, Casa Mira, accounted for 52% of the sales. By location, Cebu made up the bulk of the sales with 40% generated from all project areas across VisMin. 

CLI’s hotel operations also showed a remarkable recovery, with a YoY growth of 79% to P29 million driven by improved room rates as business and tourism travel normalized further in 2023. 

Additionally, CLI’s leasing business recorded a 22% growth, amounting to P21 million. Meanwhile, the company’s property management arm, Cebu Landmasters Property Management (CLIPM), also posted a 27% increase in management fees totaling P15 million, attributable to the management of 24 projects. 

Looking ahead, CLI has outlined a dynamic roadmap for 2023. Three new hospitality projects, namely lyf Cebu City in Base Line Center, Citadines Bacolod City, and The Pad Co-Living in Banilad High Street, are scheduled to commence operations this year.

These projects are expected to contribute to the company’s hotel revenue, with CLI managing a total of 657 keys by the end of the year – more than a threefold increase from the 180 rooms in 2022. 

In the next 2 years, CLI will also complete over 46,008  sqm of gross leasable area (GLA) from their commercial leasing business, including retail spaces at its Astra Centre Mall and the City Center at the Davao Global Township.

With 19 residential projects in the pipeline, valued at Php29.75 billion, Cebu Landmasters is poised to continue its growth trajectory throughout 2023. The company’s commitment to delivering value to its shareholders was evident in the recent dividend declaration on April 28, with a dividend of Php0.18 per share.