Growth for Cebu Landmasters soars high for first half of 2021

Cebu Landmasters posted a growth of net income for the first half of 2021 as the recovery from COVID-19 continues.

Image courtesy of Business News Asia

Business News Asia has recently reported that Philippine developer Cebu Landmasters announced an increase in growth with net income for the first half of the year surging by 66 per cent annually that grew from PHP 792 million to PHP 1.32 billion in the first six months as it keeps performing strongly in finance.

Rising revenue from PHP 3.5 billion to PHP 5.1 billion from sales in real estate increased the profit significantly, covering various housing developments that serve diverse buyers with 47 per cent from its economic brand Casa Mira that reported 206 per cent annually from solid sales and increases in progress in construction.

Cebu Landmasters disclosed that an average of 97 per cent of activities in construction in sites for its projects is now ongoing, with major ones in Cebu, Dumaguete, and Bohol in full swing and the rest going at just 90 per cent above due to hindrance from lockdowns.

More demand for better homes from various buyers due to the outbreak led reservations to cost by 12 per cent from PHP 7.4 billion annually to PHP 8.3 billion. The company launched six residential projects worth PHP 11 billion with its economic brands and brands for middle and high ends in the first half of 2021 in Cebu, Iloilo, and Ormoc.

Recurring income from the leasing and hotel business of the company still suffering from the restrictions will complement sales on real estate but it has planned to release it amid the worldwide from the outbreak. The company has been expanding hotels to 1,433 rooms by 2025, when observers expect tourism to return. It launched earlier this year Sofitel Cebu City, Mercure Cebu City, and Abaca Resort Mactan that will comprise 487 rooms as well as Latitude Corporate Center that added 13,000 square metres of gross leasable area or GLA, helping it to post 29,051 square metres in GLA for the first half of 2021, twice its yield at the end of 2020. The company projects the recurring business to add 10 per cent to the main line of Cebu Landmasters in four to five years.

Finishing five projects in the first half of 2021 has also strengthened operating cashflows generating PHP 5 billion in collections upon take-out and turnover for now. Cebu Landmasters finished 40 projects while it has been working on 36, with 14 in the pipeline up to now.

Cebu Landmasters bought four hectares in Panglao in Bohol and sites to expand existing projects of Casa Mira to keep its growth for the long term, with over 200 hectares of sites with high value under deals up for approval in the second half of 2021.