CLI posts P3.5B revenues despite COVID.
The COVID-19 pandemic failed to hurt Cebu Landmasters Inc. The revenues of the leading residential developer remained strong because of affordable housing.
With revenues at P3.5 billion for the first half of 2020, this matched the company’s 2019 performance. The achievement validated its market and operational leadership in central and southern Philippines.
The economic crisis caused diminished OFW remittances and construction stoppages. This harmed the mid-income and economic housing sectors in general. But, CLI posted record reservation sales of P4.613 billion in the second quarter. The firm recorded a 41% growth in sales to P7.436 billion in H1 2020 year-on-year.
The firm’s Casa Mira brand contributed 65% of total sales. CLI position Casa Mira as its economic, affordable housing brand.
Also, the listed company posted a significant growth in its recurring business by 137%. Business grew to P91.3 million from P38.6 million year-on-year.
Hotel revenues, for instance, hit P38.2 million. The 180-room Citadines Cebu City maintained 70% occupancy throughout the lockdown period. Bookings came from several business process outsourcing companies. The BPOs housed their employees during the community quarantine period. Rental income likewise improved by 16% and registered at Php 32.3 million.
Affordable housing in VisMin
CLI will continue to serve the undiminished demand for affordable housing in VisMin. It has a total of 14 projects in 2020 worth P19 billion. In fact, it launched four projects in Cebu, Bohol and Iloilo in the first half of the year.
A wide network of partner brokers and sales agents support CLI. It also underwent a process of improvement and digitalization.
“Launching more projects in the second half pleased us. Our markets have remained committed to their purchases. The pandemic made many see,” Jose Soberano III observed.
The CLI chairman and chief executive officer said they want to own a home in a safe and secure community. This is a good way to secure their family’s future.
More locals buy affordable houses
Soberano noted that most CLI buyers were local residents. The stretched payment terms and grace periods prodded them to invest in a home.
While sales from OFWs dipped, the local market compensated. The OFWs accounted for only 20% of the sales in the second quarter. This is CLI’s best sales performance to date. In previous periods, OFWs had taken up as much as 40% of sales.
The strong capital structure will enable CLI to take advantage of opportunities. Planning and ongoing construction works for mixed-use development and hotel projects continue. Target completion will be in 2 to 4 years.
To date, CLI has an undrawn P2.7 billion from corporate notes. These are available at 3.45% fixed for five years and 3.56% fixed for seven years. The Philippine Rating Services Corporation (Philratings) maintained CLI’s stable outlook rating. This validated the firm’s strong financial position and stability.
Soberano expressed confidence CLI was on track to meet its year-end revenue targets. Construction of its projects is catching up in the third and fourth quarters.
“Construction sites continue to progress despite the quarantine. Most Cebu Landmaster’s projects are in cities with minimal quarantine restrictions. The firm imposed strict health protocols at the job site. We focused on keeping our workers safe and productive. We look forward to handing over units to many of our buyers in the next few months,” Soberano said.
The company gave P20 million to help the construction workers and contractors.