CEBU Landmasters, Inc. (CLI) posted a net income attributable to the parent company of P1.85 billion, an 8% decrease, which the mentioned real estate developer said was within its profit guidance for 2020.
“[The company] quickly deployed] catch-up steps soon after the easing of pandemic lockdowns in the first half of 2020,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said in a statement on Wednesday.
The group attributed the single-digit profit drop to its “market-leading VisMin (Visayas-Mindanao) benefit and sustained demand [across residential] product line.”
Consolidated sales for the year totaled P8.3 billion, a 2.4 percent decrease from P8.5 billion. Meanwhile, sales increased by 18 percent to P2.59 billion in the fourth quarter, up from P2.2 billion in the previous quarter.
CLI reservation revenue increased by 12% in 2020 to P14.25 billion, a business high, from P12.67 billion the previous year. It also stated that high sales take-up resulted in P20.4 billion in unrealized revenue.
“The company’s economic housing brand Casa Mira accounted for 69 percent of 2020 revenues, [while] its mid-market Garden Series contributed 19 percent and high-end Premier Masters contributed 10 percent,” the company added.
CLI cited its digitization activities as early as April of last year, which the property developer said increased its online distribution capability.
Real estate revenues for the year totaled P8.15 billion, a 2.9 percent decrease from P8.39 billion. Rental revenue fell nearly 13 percent to P55.2 million from P63.15 million the previous year. Hotel revenue increased to P54.6 million from P8.52 million.
In 2020, the firm expects the balance sheet to exceed $1 billion.
“We are now completing our fourth year as a public firm, and we are confidently now a $1-billion organization in terms of assets thanks to our progressive development of residential units and build-up of our recurring income business,” said CLI Director and Chief Operating Officer Jose Franco B. Soberano in an online briefing on Wednesday.
The group is actively working on 25 programs.
This year, 15 of these P19-billion residential projects of over 7,500 units will be completed.
CLI has stated that the gross leasable area (GLA) would increase by 48 percent to 28,000 square meters (sq.m.) from 14,000 sq.m. in 2020.
It plans to spend P12 billion on capital expenditures for project growth. This year, the business hopes to expand by 15-20%.
The CLI director expressed optimism about the region’s prospects this year, stating that they “understand very intimately, very deeply” their market in the region.
“No other developer on the market or came out and claimed that VisMin would be my only priority,” he said. “But our single focus has been our greatest asset because there is so much potential in Visayas and Mindanao.”