CLI net profit up 30% at P826M in first sem

CEBU, Philippines — Cebu Landmasters Inc., (CLI) saw its first half net profit rise 30 percent boosted by robust sales while it is set to offer its maiden bond issuance this year.

In a disclosure to the Philippine Stock Exchange on Monday, the listed property firm said profit from January to June hit P826 million, up from P633 million last year.

The company also announced it had signed last June an agreement with four of the country's largest banks to issue P5 billion worth of corporate notes, the proceeds of which will be used to fund the planned capital expenditures for the remaining months of the year.

Meanwhile, consolidated revenue reached P2.6 billion, up 45 percent.

"With record-breaking sales accompanied by our fast-turnaround development, we are confident that this momentum can be sustained,” said CLI president and CEO Jose Soberano III yesterday.

Real estate sales increased 45 percent to P2.585 billion from P1.788 billion last year.

MesaVerte Residences in Davao City, Baseline Center in Cebu City, Casa Mira South in Naga City and Casa Mira Towers Labangon in Cebu City were the primary contributors to the robust performance.

For the first six months, the listed developer kept its target net profit margin of 30 percent as operating expense or OPEX ratio, the cost to operate a property versus its income, decreased to 10 percent from 13 percent.

CLI expects to end the year with P5.3 billion in revenue and P1.7 billion in net income.

Reservation sales, or sales from developments not yet under construction, are projected at P7 billion, with P4.6 billion or 65 percent of the goal already achieved in the first half.

Soberano said CLI will meet its targets as it introduces fresh inventory to the market in the next months.

These projects will be located in Cebu, Davao, Cagayan de Oro and in its new expansion sites in Iloilo, Bacolod and Bohol.

“We just launched Astra Centre, CLI’s second mixed-use property that will soon rise at the heart of A.S. Fortuna Street in Mandaue City, Cebu and is expected to change its landscape," he said.

By end August, the Cebu-based developer targets to fully spend the P2.15 billion raised from its initial public offering last year. The proceeds were used mainly to fund acquisitions and joint ventures, which are seen to start generating returns by next year.

The developer has bought a total of 767,917 sq.m. of land while 420,573 sq.m. were developed to new projects.

This brings CLI’s landbank as of June 2018 to 976,302 sq.m, a 55 percent increase from 628,958 sq.m. during IPO. Of these, 26 percent is in Cebu, 41 percent in Mindanao and the rest in other parts of Visayas. (FREEMAN)