Cebu Landmasters allocates P14.5 billion for capex
LISTED property developer Cebu Landmasters, Inc. (CLI) has allocated P14.5 billion for its capital expenditure (capex) budget this year.
“A portion is dedicated to land acquisition, particularly for the inaugural Luzon project,” CLI said in a stock exchange disclosure on Wednesday.
The company said it has P27 billion worth of new developments in the pipeline, including expansion projects in various areas such as Butuan.
In 2023, CLI’s capex totaled P12.9 billion, of which 82% was allocated for project development, 12% for investment property, and 6% for land acquisition.
“Our consistent growth fuels our vision to strengthen the company’s current offerings and expand beyond Visayas/Mindanao,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said.
In 2023, CLI recorded a 29% increase in its consolidated net income to P4.64 billion, led by higher revenues across its portfolio.
The company’s consolidated revenue jumped by 20% to P18.8 billion following higher demand for its residential properties and business portfolio.
Real estate sales revenue grew by 20% to 18.5 billion, driven by consistent collections and steady construction progress. Reservations hit P20.6 billion, up by 14% from P18 billion in 2022.
CLI launched 10 projects in 2023 totaling 4,249 units and an overall value of P18.7 billion. The projects saw a 63% sell-out rate. The company’s completed projects are already 97% sold out, resulting in a blended total portfolio sell-out rate of 93%.
The property developer’s income from hotel operations rose by 66% to P139 million, while its leasing income improved by 42% to P112 million.
CLI has about 800 room keys and is set to increase with seven additional hotel projects. It previously expanded its hospitality portfolio with the opening of lyf Cebu City in Base Line Center and The Pad Co-Living in Banilad High Street in Cebu.
The company’s gross leasable area rose to 36,772 square meters, led by newly completed projects such as Banilad High Street, Base Line Center Phase 2, and Retail Pods in Davao Global Township.
CLI said the initial project under its joint venture with Japan-based global real estate firm NTT UD Asia Pte. Ltd. (NTTUDA) will be a P6.4-billion two-tower residential complex in Cebu IT Park.
The first tower of the Japanese-inspired residential complex will be launched by the fourth quarter.
CLI previously partnered with NTTUDA to form a joint venture called CLI NUD Ventures, Inc., marking the Japanese company’s first venture in the Philippines.
“We are bullish that the strategic capital raise through preferred share issuance and our first-ever international partnership would fortify our growth and expansion,” Mr. Soberano said.
On Wednesday, CLI shares were unchanged at P2.85 apiece. — Revin Mikhael D. Ochave