VisMin developer Cebu Landmasters Inc. (CLI) posted a 24 percent increase in net income to P1.7 billion in the first half of 2024 from the P1.37 billion registered in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said its first half revenue also grew by 24 percent to P11.31 billion this year from P9.15 billion in 2023 due to progress across all its business segments.
This is driven by ongoing construction progress, substantial rise in hotel and leasing revenues, and an increase in new units qualifying for revenue recognition, as well as a one-off lot sale.
"Cebu Landmasters is poised to sustain this growth trajectory over the next few years with more projects opening in the coming months and as we further expand to new market areas,” said CLI Chairman and CEO Jose Soberano III.
CLI’s hotel revenue also rose with the addition of two new operating hotels in the first half of the year. Alongside the fully operational 180-room Citadines Cebu City, CLI opened lyf Cebu City (159 rooms) and The Pad Co-Living (156 rooms).
Hotel revenue streams are anticipated to grow further with the opening of the 200-room Citadines Bacolod City which is now receiving Meetings, Incentives, Conference and Exhibitions (MICE) bookings.
The company’s leasing business also has a robust growth of 42 percent, driven by higher gross leasable area (GLA), now at 40,575 sqm. This growth followed the turnover of new retail areas.
To further drive future financial growth, four new projects valued at P8.3 billion were also successfully launched by CLI in the first half of 2024.
"There has been steady demand for our residential projects as shown by the fast market absorption of our newly launched developments. Demand continues to outweigh supply in the VisMin regions, with our projects selling out within days after market introduction," Soberano highlighted.
The successful new launches, coupled with sustained demand, resulted in P11.6 billion in reservation sales for the first half of the year, reflecting a 10 percent increase year-on-year.
Notably, 48 percent of these sales originated from Davao projects, with 66 percent attributed to the company’s Garden Series targeting the mid-market.
CLI achieved a 94 percent sell-out rate across all projects at different development stages: 97 percent for completed projects, 94 percent for ongoing projects, and 81 percent for newly launched projects.