CEBU Landmasters, Inc. (CLI) reported a double-digit increase in earnings for the first three months of 2018, driven by higher revenues due to the construction progress of its projects.
In a statement issued Wednesday, the Cebu-based property developer said net income improved by 17% to P498.7 million in the first quarter, supported by a 14% jump in revenues to P1.26 billion.
Reservation sales grew 24% to P2.7 billion during the period, following the launch of its new Garden-series condominium in Bacolod and Casa Mira in Dumaguete. With this, the company is on track to reach its full-year target of P7 billion in reservation sales.
CLI also noted that higher occupancy and lease rates allowed it to book a 31% increase in rental revenues to P11.89 million for the period.
“We remain bullish about our prospects for the rest of the year as we see a sustained momentum in our real estate sales and our continuous drive to grow our recurring income,” CLI Chief Executive Officer Jose R. Soberano was quoted as saying in a statement.
With the strong first quarter results, Mr. Soberano is optimistic the company can achieve its full-year guidance of P5.3 billion in revenues, and P1.7 billion for net income.
The company has a total of 20 projects lined up for this year, located primarily in the Visayas and Mindanao region. This will bring the total number of projects under CLI to 66.
“We continue to introduce new projects to diversify our product line and provide sustainability to the company. The 20 projects will be a mix of residential, office, retail and hotel,” Mr. Soberano said.
For its hotel portfolio, CLI has recently partnered with the Radisson Hotel Group for the first Radisson RED hotel in the country. This will be the fourth hotel under its network, following Citadines Cebu City, Citadines Riverside Davao, and lyf Cebu City.
In a study released by real estate consulting services firm Santos Knight Frank, CLI was tagged as the leading local housing developer of horizontal and vertical developments in the Visayas and Mindanao region.
Santos Knight Frank reported that CLI accounted for 18% of supply for house and lots, while delivering 2,638 condominium units in 2017.
For this year, CLI has committed to spend P8.8 billion in capital expenditures for land acquisitions as it aims to expand to General Santos City, Butuan City, Ormoc City, and Roxas City. — Arra B. Francia