VisMin developer Cebu Landmasters, Inc. (CLI) reported a 14 percent growth in earnings to P806 million in the first quarter of 2022 from P714 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said net income from core operations would have jumped 62 percent from operations if the tax windfall from the CREATE law in the first quarter of 2021 is factored out.
Revenues grew 53 percent to P3.56 billion in the period under review from P2.3 billion in the first quarter of 2021 with all business units registering stellar performance.
The surge in revenues was driven by real estate sales from a number of projects that have been increasing over the years. These have resulted in greater construction progress and consequently, higher revenue recognition.
Moreover, construction was in progress due to catch-up measures during the pandemic and is now in full swing in the listed company’s 15 VisMin sites.
Sales take-up rose 36 percent to P4.5 billion in the first three months of 2022 from P3.3 billion in the comparative period last year.
CLI’s rental revenues improved by 28 percent and are attributable to increases in lease contracts and new tenants in the newly completed Latitude Corporate Center.
Hotel revenue grew fourfold with the reopening of local and international borders, reviving trade and tourism. Meanwhile, CLI’s property management arm posted a 34 percent hike in management fees from newly completed projects.
“We are pleased that we began the year strong with robust sales and swift construction pick up of new projects,” said CLI Chairman and Chief Executive Officer Jose Soberano III.
He added that, “We are on track to hit our growth target of at least 20 percent. We remain ready to make the most of opportunities presented by the fast-recovering VisMin economy.”
To date, CLI has sold out 89 perentof all its projects in the various stages of development across VisMin.
Completed projects are 96 percent sold out; ongoing developments, 86 percent sold out; and those launched in the first quarter of 2022, 80 percent sold out.
CLI is also expected to collect over P12 billion take out value from the turnover of newly completed projects.
The firm has set aside P13 billion for capital expenditures this year to fund new purchases and other expenses, of which P2.6 billion was spent in the first quarter including P500 million for landbanking.