Cebu Landmasters, Inc. FY23 Net Income Up 29% to PHP 4.64B, Offers Preferred Shares, and Announces International Partnership

The leading developer in Mindanao and the Visayas, Cebu Landmasters Inc. (CLI), reported a 29% year-on-year rise in consolidated net income to P4.64 billion. Additionally, CLI reported a noteworthy increase in net income to its stockholders, rising from P3.17 billion to P3.58 billion, a 13% increase. The growth is credited to a strong 20% increase in consolidated revenue, which came to P18.8 billion from all sources of income, mostly from real estate sales and hotel operations and leasing.

This is a result of the robust demand for residential properties and the varied and ever-evolving business portfolio of the listed company.

Real estate sales revenue increased by 20% to P18.5 billion, mostly due to sustained construction progress and continuous collections. Additionally, reservations of P20.6 billion, a 14% increase from P18 billion in 2022, broke records. This increases the amount of potential revenue we have.

In 2023, the publicly traded company introduced ten new projects totaling P18.7 billion and 4,249 units. In less than a year on the market, these developments sold out at an astounding 63% rate. With 97% of completed projects now sold out, the blended overall portfolio sell-out rate is currently 93%.

Notable growth rates were also observed in CLI's recurring revenue projects, specifically in the areas of hotel operations and leasing. Hotel activities for the company increased by 66% to P139 million, while leasing saw a 42% increase to P112 million.

From one hotel, Citadines Cebu City, to three, including the newly launched lyf Cebu City in Base Line Center and The Pad Co-Living in Banilad High Street in Cebu, CLI has increased the scope of its hospitality offerings. Having started with 180 rooms, CLI currently has about 800 room keys, and seven more hotel projects are in the works that will likely contribute to future revenue growth for hotels.

Furthermore, due to recently finished developments like Davao Global Township's Retail Pods, Base Line Center Phase 2, and Banilad High Street, the Gross Leasable Area (GLA) increased from 28,411 sqm to 35,772 sqm.

P12.9 billion was spent on capital projects during the year, of which 82% were for project development, 6% were for land acquisition, and 12% were for investment real estate.
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The CLI Board of Directors approved the declaration of a regular dividend of P0.15 centavos per share together with a special dividend of P0.03 centavos per share on March 18 due to the company's remarkable performance and persistent double-digit growth. The payments for these dividends are set for May 3, 2024, and will be made to shareholders who were on file as of April 17. The board's choice is in line with CLI's goal of increasing shareholder value ever since the IPO.

CLI Starts Public Offer Period for Preferred Shares

With the launch of its preferred share offering, which raised PHP 3 billion and saw an extra P2 billion in oversubscription, CLI achieved a noteworthy milestone. The promotion is valid from April 2 until March 19. Preferred share investors should anticipate appealing dividend returns: the 4-year Series A-1 yields 7.585%, while the 7-year Series A-2 yields 8.25%. On April 12, 2024, the aforementioned shares are expected to become public on the PSE main board.

The offering's proceeds will give CLI a significant financial infusion that will support its expansion plans and strategic ambitions while strengthening its balance sheet in anticipation of future growth.​

CLI signs joint venture agreement with Japan real estate firm NTT UD Asia 

CLI also announced its first international partnership, forming a joint venture with Japan-based global real estate firm NTT UD Asia Pte. Ltd. (NTTUDA), a subsidiary of NTT Urban Development Corporation (NTTUD), to establish CLI NUD Ventures, Inc.  

The initial project is a PHP6.4 billion, two-tower, Japanese-inspired residential complex in Cebu IT Park, with Tower 1 set to launch by Q4 2024. This collaboration with CLI marks NTTUD's first venture in the Philippines, expanding its global portfolio with mixed-use, office, and residential projects.

CLI Chairman and CEO Jose Soberano III said, “We are bullish that the strategic capital raise through preferred share issuance and our first-ever international partnership would fortify our growth and expansion. This also strengthens our commitment to delivering exceptional value to our stakeholders as we keep enlarging our business."

CLI’s 2024 growth initiative

Worth PHP27 billion, CLI is now working on new projects, including expansion initiatives in Butuan and other areas. The company has allocated a portion of its P14.5 billion for capital expenditures in 2024 to land acquisition, specifically for its first-ever project in Luzon.

With a healthy pipeline of new projects, smart development efforts, and solid financial performance, the company is well-positioned for growth and success in the years to come.

​“Our consistent growth fuels our vision to strengthen the company’s current offerings and expand beyond VisMin. This is also a testament to the resilience, hardwork and dedication of our team," says Soberano.