PROPERTY developer Cebu Landmasters Inc. (CLI) targets to launch 13 to 15 more projects in 2021 as its existing inventory levels have inched closer to completion on the back of robust real estate sales.
Franco Soberano, CLI executive vice president and chief operating officer, said their outlook for the real estate industry remained upbeat.
“The real estate industry is in a position to bounce back very strongly. Buyers are now able to move around, searching for houses. CLI, being able to exceed its sales level from last year is already a good indicator. For the tourism market, as soon as the tourists come back, it’s going to really jump up very easily,” said Soberano, during the company’s nine-month 2020 Investors and Analysts’ Briefing on Monday, Nov. 16.
Grant Cheng, CLI chief financial officer, said they will continue with their momentum in terms of acquisition guided by the current market demands.
“We will continue doing what we did—being prudent and judicious with our balance sheet. We’re not going to suddenly go on a spending spree and acquire things left and right. We will be informed by the state principles and spirit that have brought us to where we are today, which we have a very strong hand and we’re in a very good position. We’re going to finish all our projects and deliver them and try to catch up and make up for lost time as soon as things open up,” he said.
“We will be very acquisitive on very interesting opportunities as the market actually moves on,” he added.
CLI is still preparing to launch six more projects this year.
CLI’s consolidated revenues reached P5.7 billion and net income to parent at P1.5 billion for the first nine months of 2020, closely resembling its pre-pandemic performance in 2019.
Consolidated revenues dipped slightly by four percent year-on-year, but still outperformed the industry due to robust real estate sales of P5.56 billion for the period.
The firm’s revenues surged to P2.2 billion, up 57 percent quarter-on-quarter, as quarantine restrictions eased in key Visayas and Mindanao (VisMin) cities.
Earlier in the year, the listed firm said it secured its uninterrupted expansion by launching five residential projects with high sales velocity valued at P5.5 billion, while expanding to new areas in the VisMin despite the pandemic.
Expansion areas include Iloilo, and the underserved areas of Bohol and Ormoc.
Consequently, reservation sales for the first nine months increased by 14 percent year-on-year to P10.5 billion.
The boost in reservation sales translates to P17.9 billion in unrecognized revenues, or an 18 percent increase, and sustained earnings in the near future.
“We are pleased to serve new residential homeseekers in the VisMin, where demand for residential housing has proven to be a bright spot in the region’s economy. There has been sustained demand from both local and overseas Filipino buyers, which has enabled CLI to surpass its reservation sales performance in 2019. The housing backlog has never been more pronounced than now due to the pandemic, and it’s our shared responsibility to address this backlog as best we can,” Soberano said.
For the last quarter of 2020, CLI expects stronger OFW inflows and general consumer outlook in the VisMin to bounce back as local businesses reboot operations.
He also expected the business process management firms to continue expanding in the region even as the global economic crisis deepens. (JOB)