Cebu Landmasters sets P13.5-billion capex for 2023

LISTED Visayas-Mindanao property developer Cebu Landmasters, Inc. (CLI) has set its capital expenditures (capex) for the year at P13.5 billion, a 23% increase from last year’s P10.98 billion.

As per the company’s statement on Thursday, the majority of the capex (83%) will be used for project development, while a smaller proportion (11%) will be used for land acquisition.

The company has a pipeline of 19 projects with a total worth of P29.75 billion, it noted.At the same time, Cebu Landmasters said it intends to launch three hospitality projects this year, namely The Pad, Lyf Cebu City at Base Line Center, and Citadines Bacolod City, as part of its efforts to expand its gross leasable area with an additional 4,000 square meters.

“The company is also setting its sights on a Luzon entry with a landbank buildup that will begin this year,” it added.

Cebu Landmasters recorded a normalized attributable net income of P3.17 billion for 2022, representing a 32% rise from P2.40 billion the previous year.

“Our robust 2022 performance is a testament to our growing commitment and leadership in the Vis-Min region,” Cebu Landmasters Chairman and Chief Executive Officer Jose R. Soberano III said.

“We have been recording double-digit growth across all segments since our 2017 IPO (Initial Public Offering). We are finally setting our sights on Luzon in the next (two) years,” Mr. Soberano added.

The company reported a 40.3% increase in revenues to P15.66 billion from P11.16 billion, attributed to strong sales, exceptional collections, and important achievements; in addition, its unrecognized revenues for future recognition amounted to P29 billion.

Real estate sales grew 40.4% to P15.44 billion from the P11 billion in 2021, driven by significant progress in the company’s construction projects.

Last year, the company constructed around 5,000 residential units across 16 ventures worth a total of P19.36 billion.

“Sales velocity of these launches hit peak levels with most developments fully taken up within days. CLI’s first project in a new area, Puerto Princesa, for instance, was 85%-sold out in less than a week,” the company said.

Revenues from hotel operations surged by 71% to reach P83 million, whereas rentals increased by 7% to P79.28 million from its previous figure of P74.27 million, primarily as a result of higher lease rates and new tenants at the new corporate center.

Casa Mira, the company’s economical brand, made up the majority of revenue at 47%, with the mid-market Garden Series and high-end Premier Masters contributing 27% and 24%, respectively.

Cebu Landmasters shares closed 5.32% lower at P2.49 apiece on Thursday. — Adrian H. Halili