Cebu Landmasters upbeat on 2018 earnings
Property developer Cebu Landmasters Inc. (CLI) expects to post P1.7 billion in net profit next year, 41.7 percent higher than the projected bottom-line this year, on robust revenues from its pipeline of residential projects.
CLI also plans to debut on the local bond market early next year, to raise fresh funds for expansion. The company has obtained approval from its board to file for up to P10 billion in bond offering for shelf registration, the first tranche of which is expected to amount to around P3 billion.
This year, CLI’s net profit is expected to exceed the P1.2 billion full-year goal on the back of P3.6 billion in projected revenues, CLI senior vice president Franco Soberano said in an investors briefing yesterday.
Next year will be “another banner year” for CLI, with revenues growing by another 47 percent to P5.3 billion, he added.
“We are very conservative and confident about these figures,” Soberano said.
As an indicator of future growth, CLI also expects reservation sales to reach P7 billion next year from at least P4 billion this year as the company plans to launch 20 new projects. To date, 46 projects are ongoing and in various stages of completion.
“We’re well on our way to our 2020 target,” Soberano.
CLI’s target is to reach P3.5 billion in net profit out of P10 billion annual revenues by 2020.
In the first nine months of this year, CLI’s revenues rose by 67 percent year-on-year to P2.77 billion while net profit rose by 77 percent year-on-year to P960 million.
Growth next year is expected to be driven by ongoing projects, which will be completed in 2018: Casa Mira Towers Labangon, MesaVerte CDO, Base Line Center Phase 1 (Baseline HQ/Citadines, Baseline Premier).
As a rare proposition, CLI operates under a fast turnaround strategy. It usually launches projects six months after land purchase and turns over to buyers two to three years after launching.
Casa Mira Towers Labangon, launched in December 2015, topped off a few weeks ago and will be completed in October 2018. MesaVerte CDO, launched on November 2015, will be completed in July 2018; and Baseline Center phase 1, in December 2018.
Other growth drivers are seen from sales of new projects that will soon start construction: MiVesa Garden Residences Phase 3, MesaVirre Building A, and Casa Mira South Phase 2 and 3.
CLI has been expanding its footprint in Visayas and Mindanao by purchasing lands in strategic locations like Davao, Bacolod, Mandaue, Cagayan de Oro, Iloilo and Dumaguete. Earlier this year, CLI launched P8 billion worth of projects strengthening its presence in Cebu, Davao while expanding its garden series to Bacolod (MesaVirre), and by introducing Casa Mira Coast to Dumaguete.