Leading developer in VisMin Cebu Landmasters, Inc. (CLI) is expected to launch P29.75 billion worth of pipeline projects to further solidify its growth trajectory after a record-breaking performance in 2022, the company announced during its 2023 Annual Stockholders Meeting held today, June 1, at Citadines Cebu City.
In 2022, CLI hit an all-time high normalized net income of P3.17 billion, up 32% from the previous year. The company recorded earnings growth across all revenue sources, allowing CLI to increase its capital spending by 13% mainly for property development and land acquisition.
“Our robust performance last year demonstrates our growing commitment and strengthened leadership in the VisMin region. We have recorded double-digit growth across all market segments since our 2017 IPO. Because of this remarkable growth, we are finally setting our sights on Luzon in the next two years,” CLI Chairman and CEO Jose R. Soberano III said.
Soberano added that they have been gearing up for the “Next Level CLI” strategy, which includes growing the company’s capital, expanding its portfolio, developing new areas, and striving for sustainability.
CLI just bolstered its capital for future developments. In October 2022, the company listed its first fixed-rate bond offering worth P5 billion at the Philippine Dealing and Exchange Corporation (PDEx). This was from its approved shelf registration of a P15 billion debt securities program to be utilized within three years.
The Philippine Rating Services Corporation awarded the CLI bonds a PhilRatings credit rating of Aa plus with a stable outlook, and recommended the company for its sound management, strategies, and its competitive advantage in VisMin markets, evidenced by continued growth despite the pandemic. For this, CLI was awarded the Best New Bond by The Asset at the 2022 Triple A Country Awards.
CLI distributed close to P2 billion in cash dividends and 123% stock dividends from its IPO until 2022.
Substantial capital build-up pushed CLI to grow its portfolio despite unprecedented adversity at the beginning of 2022, following the onslaught of typhoon Odette that devastated several areas in VisMin in December 2021.
In 2022, the company launched close to 5,000 units across 16 projects, worth P19.36 billion collectively. CLI’s business portfolio also surpassed the 100 mark with a total of 109 projects, with over 80 residential projects, 6 offices, 10 hotels, 10 mixed-use projects, and 3 township developments spread across 16 key cities in VisMin. CLI is geared for a stronger expansion with 19 projects in the pipeline worth P29.75 billion collectively.
Aside from continuing to fill in VisMin’s housing backlog by expanding to new areas, CLI is also establishing its foothold in the hospitality industry with three projects to open in 2023, namely, The Pad, lyf Cebu City at Base Line Center, and Citadines Bacolod City. The listed company also targets substantial growth in its leasing business, with the addition of 4,000 sqm worth of gross leasable area (GLA) largely from Davao Global Township retail pads and convention center. Building recurring income developments will potentially springboard for REIT.
The challenges of the pandemic and typhoon Odette also pushed CLI to double down and expand their sustainability initiatives in 2022. “We in CLI have always aimed for the next level: growing our capital, expanding our portfolio and new areas, and striving for sustainability,” Soberano highlighted in his report during the stockholders’ meeting.
“From our commitment to closing the economic housing gap in Visayas and Mindanao, Cebu Landmasters now devotes itself to building sustainable and flourishing developments in VisMin and beyond,” Soberano added.
CLI already opened the year with a 33% consolidated revenue growth in Q1 2023 to P4.78 billion from P3.58 billion, on the back of double-digit growth across all its business units.