Cebu Landmasters eyes 20% annual growth in 3-5 years
The Soberano family’s Cebu Landmasters Inc. (CLI) is considering an increase in capital spending in 2023 as it targets an annual profit growth of at least 20 percent over the next few years.
Beauregard Grant L. Cheng, chief financial officer of the Visayas and Mindanao-focused developer, said they were preparing a budget of P12 billion to P14 billion for next year versus the target spending of P13 billion in 2022.
This would be used to build new townships, condominium towers and hotels.
CLI chief operating officer Jose Franco Soberano said demand for projects remained strong even during a period of rising interest rates.
“[Our] goal now is to sustain growth and be able grow at least 20 percent, let’s say, in the next three to five years,” he said during their quarterly financial briefing on Monday.
Soberano said growth drivers, apart from residential sales, were the company’s leasing portfolio and hotels.
This comes as CLI saw profits jump 34 percent to P2.2 billion in the first nine months of the year while revenues surged 43 percent to nearly P11 billion.
The developer said it was on track to grow profits by at least 20 percent in 2022.
Residential sales were driven by affordable housing brand, Casa Mira, whose revenues grew 49 percent to P5.03 billion.
CLI launched 11 residential projects from January to September this year with a total project value of P19.5 billion. Soberano said the projects were 93 percent sold.
“Most of our new projects were sold out in a matter of days attesting to the quick pace of recovery and strength of the VisMin market, our area of focus. Projects for all segments are immediately absorbed by the market” CLI chair and CEO Jose Soberano III said in a separate statement.
Currently, CLI has a total of 79 residential projects in different stages of development all over the Visayas and Mindanao with a sales value of P107 billion.
