Developer Cebu Landmasters, Inc. (CLI) said Thursday, February 7, that it expects its recurring income to increase over the next four years, possibly contributing 10% to total revenues, as it completes at least eight projects in the Visayas and Mindanao.
The new projects will bring the company’s gross leasable area to over 200,000 square meters, president and CEO Jose R. Soberano III said in a statement.
“Our leasing business complements our residential developments, allowing us to provide complete and gratifying experience to the communities that we build and customers that we serve,” Soberano said.
The company also looks at another recurring income stream from its hotel portfolio, which is expected to offer over 1,000 rooms within the next four years.
“With the continuous growth of the hospitality industry in VisMin, demand for hotel rooms will definitely rise. Cebu Landmasters is at the forefront in providing what the market needs, especially those that travel a lot, from hotel rooms to serviced residences,” Soberano said.
As of 2018, CLI reported a total gross leasable area of 8,952 square meters after the turnover of about 2,655 square meters to Robinsons Supermarket at the Base Line Center.
Base Line Center, CLI’s first mixed-use project, will also offer over 4,700 square meters of office spaces and 5,900 square meters of retail area when fully operational.
Additional leasable areas will be offered from the following ongoing projects: Base Line HQ, Latitude Corporate Center, The Plaza at 38 Park Avenue, Astra Centre Lifestyle Mall, Astra Corporate Center (2021), The Paragon Davao Lifestyle Mall, The Paragon Convention Center, and Phase 1 of the Davao Global Township.
Astra Centre Lifestyle Mall, the company’s first lifestyle shopping destination, will offer 14,000 square meters of gross floor area. The mall is located on A.S. Fortuna Street in Mandaue City, Cebu. It is targeted to be completed in 2021.
CLI also offers retail spaces in its residential condominium projects, each of which contributes 500 to 1,000 square meters of gross leasable area.
On top of revenues from its leasing business, the company expects to generate recurring income from its impending hotel business.
Citadines Cebu City, the first of four CLI hotels to be managed by The Ascott Limited, will be operational this 2019 with 180 hotel rooms.
Other hotels to be managed by The Ascott Limited are Citadines Paragon Davao, Citadines Bacolod City and lyf Cebu City.
CLI also signed a partnership deal with the Radisson Hotel Group for the first Radisson Red in the Philippines, which will be in Astra Centre. Radisson Red is the international chain’s lifestyle brand for the millennials.
“Cebu Landmasters will continue to diversify its developments from horizontal and vertical residential offerings to mixed-use, hotels, office, and estate projects,” Soberano said in the same statement.
CLI reported a net income of P1.22 billion in the first nine months of 2018, a 27% increase from the P959.8 net earnings in the same period in 2017. Revenues reached P3.7 billion in the same period, higher by 33% from the P2.8 million recorded in January-September 2017.
As of 1:11 p.m. of February 7, 2019, CLI shares were trading at P4 apiece, down from the previous day’s close of P4.09 and from the yearago (February 7, 2018) close of P4.64.
The company's share prices have been on a downtrend since reaching a high of P4.94 on May 17, 2018. (Ventures Cebu)