Cebu-based developer Cebu Landmasters, Inc. (CLI) reported a 13% increase in net income to P855 million in the first half of 2019 as its projects continued to perform strongly.
This translates to an earnings per share of P0.51 for the period.
Consolidated net income after tax increased 34% to P1.109 billion in the first six months of 2019 from P826 million in the first half of 2018.
Consolidated revenues also went up 34% to P3.495 billion as of June 2019 compared to P2.61 billion a year ago.
In a statement, CLI said it is on track to hit its 2019 year-end guidance of P2.6 billion in consolidated net income and P2 billion in parent net income, as well as P8.4 billion in consolidated revenues.
The company is set to launch more projects in the second half of 2019, including the expansion of the Casa Mira economic housing brand in Iloilo, Dumaguete, Bacolod and Dauis in Bohol.
The company expects these new projects to enable CLI to achieve its 2019 target of P12.5 billion in reservations sales.
CLI also aims to grow its recurring business by expanding its hotel portfolio to over 1,100 rooms by 2023.
In the first six months of 2019, recurring income came from the leasing business which posted a 16% increase in revenues to P27.7 million from P23.87 million in 2018.
The company’s total gross leasable area GLA as of the first half of 2019 was 11,815.15 square meters (sqm). With 69,234 sqm of GLA under construction, CLI appears on track to complete its planned total GLA of 200,000 sqm by 2023.
“Cebu Landmasters has rapidly expanded in its current areas. It is also preparing to launch projects in new VisMin cities in the second half of 2019. Our first township, DGT in Davao, is already underway and we have recently disclosed our partnership with Xavier University-Ateneo de Cagayan for a 63.5-hectare University township. We foresee that the volume and diversity of developments, backed by our growing pipeline, will empower us to consistently hit our targets,” Cebu Landmasters president and CEO Jose Soberano III said.
He said the company’s balance sheet continues to be solidly positioned to support the growth plans of the company. CLI reported P29.309 billion in assets as of June 2019, a 15% growth from P25.427 billion in the previous year.
Growth in revenues in the first half was primarily driven by the mid-market residential segment, which comprises 35% of the company’s projects. High-end projects contributed 33% while Casa Mira contributed 29%.
Projects in Cebu account for 61% of total revenues, followed by developments in Bacolod and Dumaguete which contribute 16% and 9%, respectively.
The highest reservation sales, meanwhile, came from projects in Davao, such as One Paragon Place, currently 78% sold-out, within the master-planned The Paragon Davao lifestyle destination.
Consolidated reservation sales in the first half remained robust at P5.263 billion from P5.187 billion in the previous year.
CLI has also continued to expand its landbank, which totals to 1.131 million square meters of land in 10 cities in the Visayas and Mindanao as of the first half of 2019.
Among its latest acquisitions is an 18,000-sqm existing resort on Mactan Island which will be re-developed, with a residential component, and a 9.4-hectare property in Ormoc to be developed into a residential project in 2020. (Ventures Cebu)