CLI in big expansion quest after beating prepandemic profit

Jose Franco B. Soberano – Director, EVP and COO of CLI

The Soberano family’s Cebu Landmasters Inc. (CLI) sees no letup in demand as it unveiled a P31.5-billion pipeline of new projects across Visayas and Mindanao after surpassing prepandemic earnings in 2021.

CLI plans to roll out 21 projects, including oceanfront homes, offices and new phases inside its township developments, for the rest of the year.

CLI chief operating officer Jose Franco Soberano said they wanted to expand faster despite the rising cost of construction materials and commodities that has dampened economic growth prospects for the year.

“Our strategy is to always push forward. There is no slowdown as far as our project schedule [is concerned] because that will be more expensive and we are very conscious of our commitment to our buyers,” he said during a briefing on Thursday.

Costs under control

Soberano said costs remained under control thanks to longstanding relationships with contractors, but he said these could eventually be passed on “minimally” to buyers.

New projects would help CLI reach its target to grow profits in 2022 by 20 percent.

Net income last year hit P2.61 billion, up 42 percent from 2020 despite the impact of Typhoon “Odette” (international name: Rai) in Cebu and neighboring islands last December. Earnings last year were also above the P2 billion it recorded in 2019, before the COVID-19 pandemic arrived.

Total revenues jumped 35 percent to P11.16 billion as it built more projects while reservation sales, an indicator of future revenue, added 16 percent to P16.53 billion.

Affordable housing

Affordable housing brand Casa Mira accounted for 44 percent of the company’s revenues last year, with the rest coming from mid-priced to upscale developments.

This could change in the coming years as 2021 reservation sales showed the mid and premier segments gaining momentum.

CLI was also an active land buyer in 2021, acquiring 41 hectares and increasing its land bank for future developments to 103 ha.

Meanwhile, the builder said it would continue to grow its hotels and leasing business, which could be listed through a real estate investment trust initial public offering in four to five years, said CLI chief finance officer Beauregard Grant Cheng.

Rentals will expand from the current 29,000 square meters of gross leasable area to 375,000 sq m by 2027. Hotels and hospitality was also poised to grow from the current 180 rooms to 1,775 rooms by 2026, briefing materials from the company showed.