Cebu Landmasters 2018 profit surges
Property developer Cebu Landmasters Inc. (CLI) grew net profit attributable to equity holders of parent firm last year by 36 percent to P1.66 billion on strong earnings from residential development, especially in Cebu.
Including earnings attributable to minority interest, net profit last year surged by 72 percent to P2.17 billion, CLI told the Philippine Stock Exchange.
For 2019, CLI expects net profit to grow by 20 percent both for consolidated and parent firm to P2.6 billion and P2 billion, respectively.
The company expects a 28- percent increase in reservations sales this year to P12.5 billion as it brings to the property market P25 billion worth of fresh inventory.
Consolidated revenue this year is projected to grow by 25 percent to P8.4 billion. Last year, consolidated revenue rose by 72 percent to P6.76 billion.
CLI’s performance last year was underpinned by robust sales performance and the higher number of projects that were under construction in 2018. These projects include MesaTierra Garden Residences in Davao, MesaVirre Garden Residences in Bacolod, as well as three projects in Cebu: Mivesa Garden Residences Phase 3, Casa Mira South, and Latitude Corporate Center.
About 64 percent of CLI’s 2018 revenue came from projects in Cebu. Developments in Davao and Cagayan de Oro accounted for 12 percent and 11 percent, respectively, while expansion sites in Bacolod and Dumaguete accounted for the rest.
By market segment, mid-market brand Garden series made up the bulk of 2018’s revenue contributions at 45 percent, followed by economic housing brand Casa Mira with 28 percent, while high-end Premier Masters had a 19-percent share.
The company expects to grow revenue contribution from new areas such as Cagayan de Oro, Davao and Bohol in 2019.
As an indicator or future revenue growth, CLI’s reservation sales jumped 86 percent last year to P8.54 billion, exceeding its P7 billion guidance. This was due robust sales in new projects, namely MesaVirre Garden Residences in Bacolod as well as Baseline Prestige, One Astra Place in Mandaue and Casa Mira Towers Guadalupe in Cebu.
CLI’s leasing income climbed by 26 percent to P57.48 million, supported by the 42-percent rise in gross leasable area and moderate lease rate increases with existing contracts.—DORIS DUMLAO-ABADILLA
