Homegrown Cebu builder saw H1 profit rise 164%

Newly listed property developer Cebu Landmasters Inc. (CLI) booked a 164-percent jump in first semester net profit to P634 million on higher earnings unlocked from its residential development projects.

This meant a “positive outlook” for the company in its goal to surpass a P1.2-billion net income for full year 2017, CLI said in a press statement on Wednesday.

Six-month revenues surged by 107 percent year-on-year to P1.81 billion while profit margins increased to 51 percent from 46 percent due to moderate price escalations and cost control procedures.

Also as an indicator of future revenue growth, CLI’s reservation sales was up by 155 percent year-on-year to P2.84 billion, almost breaching the entire 2016 sales figure of P2.95 billion. This was generated from projects launched in the first semester, which included the premium residential development 38 Park Avenue at the Cebu IT Park (60 percent fully sold); MesaTierra Garden Residences in Davao (85 percent fully sold); and Casa Mira South straddling the city of Naga and municipality of San Fernando in Cebu (80 percent fully sold).

CLI chief executive Jose Soberano said: “We’re proud to be a homegrown VisMin (Visayas-Mindanao) brand that has captured the needs and preferences of our target market as reflected in the sales velocity of our developments.”

Soberano attributed the growth to the robust sales and strong construction progress of various projects such as the economic residential condominium Casa Mira Towers, mid-end residential condominium developments Mivesa Garden Residences and Mesaverte Residences (Cagayan de Oro), mixed-use development Baseline Center including the Citadines Cebu City to be completed in 2018. Except for Mesaverte Residences, all aforementioned projects are in Cebu.

Total assets recorded in the first six months of the year reached P8.9 billion versus only P5.4 billion a year ago.