By Arra B. Francia, Reporter

CEBU LANDMASTERS, Inc. (CLI) is accelerating spending this year to P8.8 billion, after posting double-digit growth that allowed the company to breach its P1.2-billion net income target in 2017.

In a presentation to investors posted Tuesday, the company said the capex program will be used for project development and land acquisitions, as it sets its sights on expanding to General Santos City, Butuan City, Ormoc City, and Roxas City.

This year’s capex is almost twice the P4.8 billion the company spent in 2017.

The increased spending comes amid a 66% surge in the Cebu-based property developer’s net income to P1.294 billion last year, as revenues likewise climbed by 66% to P3.929 billion.

“We are proud of the exceptional 2017 performance of the company and are grateful for the trust given to us by our buyers and shareholders. It’s our banner year and in 2018, we will continue to deliver outstanding value as we aim to become the leading local real estate developer in the VisMin (Visayas-Mindanao) region,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement.

Real estate sales accounted for bulk of the company’s revenues at P3.869 billion, which the company attributed to the construction and sales of different projects in the Visayas and Mindanao region. This includes Casa Mira Towers Labangon, MesaVerte Residences in Cagayan de Oro, Baseline Center 1 in Cebu City, and Casa Mira South Cebu, which are almost fully sold out.

The leasing segment, meanwhile, contributed P45.6 million in 2017, 17% up from P38.87 million year on year.

CLI noted its intention to further grow the leasing business by 2019, as it completes office developments such as Latitude Corporate Center, Baseline Retail, and Citadines Cebu City — set to kick-start its hospitality business.

Seven more projects are in the pipeline to boost CLI’s recurring income by 2020, namely lyf Cebu City, Citadines Riverside Davao, Citadines Bacolod, Astra Hotel in Mandaue, Cebu, Astra Corporate Center Mandaue Cebu, Astra Center Mall in Mandaue, Cebu, and 38 Park Office in IT Park Cebu.

Reservation sales reached P4.58 billion in 2017, up 55.6% from 2016 figures and past the company’s target of P4.58 billion.

This year, CLI continues to be bullish on the property sector in the Visayas and Mindanao region as it launches 20 more projects, bringing its total number of developments to 66.

The developer targets reservation sales of P7 billion, which is expected to push revenues 35% higher to P5.3 billion this year. Accordingly, CLI is aiming to increase earnings by 31% to P1.7 billion for the year.

CLI’s aggressive push toward the Visayas and Mindanao region comes amid the government’s infrastructure program that will see the development of more airports and railways outside Metro Manila.

“The Philippine government’s decentralization push — notably the ‘Build, Build, Build program’ — will unlock land values and improve connectivity outside Metro Manila,” Mr. Soberano said.

Shares in CLI lost 22 centavos or 4.58% to P4.58 each on Tuesday, alongside the main index which also closed 2.14% lower to 8,059.60.