PROPERTY developer Cebu Landmasters Inc. (CLI) reported a solid first quarter growth of 13 percent year-on-year in consolidated revenues from P1.87 billion to P2.1 billion.
The increase in revenue was driven by robust sales from various segments and sustained construction of new developments alongside growing contributions from its expanding recurring business. Net income to CLI shareholders stood at P572 million. CLI’s gross profit margin of 50 percent and net income margin of 31 percent for the year is within the company’s target ratios and above industry average.
During the first five months of the year, the company registered P4.8 billion in reservation sales take-up or close to its first half 2019 level of P5.26 billion. Sales of P2 billion driven by its economic housing brand Casa Mira were recorded in the months of April and May, a period widely forecasted to have little economic activity. Overall, CLI’s unsold inventory is down to only 10 percent of the total inventory.
CLI said it continues to address the still underserved demand for residential projects in the Visayas and Mindanao (VisMin) through its wide network of partner brokers and sales agents. The listed firm has digitalized buyer transactions from end-to-end and made payment terms more affordable and attractive to customers.
“We expect demand for quality housing and residential units to rise prompted by the greater desire for safer and better planned living environments in the aftermath of Covid-19. Over the years, CLI has built a reputation for offering great value to its buyers and is ideally positioned to serve this rising demand,” Soberano said.
To fund these expansions, CLI has secured P8 billion worth of corporate notes and several bilateral facilities with major banks tailored per project. CLI’s incremental cost of borrowing is between 3.8 percent to 4.2 percent for five-, seven- and 10-year money, making it well positioned to manage its balance sheet, lower its financing costs and have sufficient resources to allocate funding for judicious capital expenditures.
“CLI is moving forward with both prudence and conviction. We will still be launching over 13 projects this year, especially in key segments with sustained demand including economic vertical and horizontal housing. The VisMin will recover faster, as restrictions have eased sooner with strong measures in place. There is sustained demand amid a low supply environment in key VisMin cities, as evidenced by our P2 billion sales take-up over April to May. As we are quick to adapt to this new normal and catch-up to 100 percent site operations, we are aiming to achieve a full-year guidance that will closely match the 2019 levels,” said Soberano. (PR)