Leading developer in Visayas and Mindanao Cebu Landmasters Inc. (CLI) posted a 29% increase in consolidated net income year-on-year, to PHP 4.64 billion. CLI also recorded significant growth in net income to its shareholders, up by 13% to PHP 3.58 billion from last year's PHP 3.17 billion. The growth is attributed to a solid 20% increase in consolidated revenue, reaching PHP 18.8 billion across all revenue streams, mainly from real estate sales revenues, including hotel operations and leasing. This growth is due to solid demand for the listed company's residential properties and diverse and dynamic business portfolio.
Revenue from real estate sales continued upward, rising 20% to PHP 18.5 billion, driven by consistent collections and steady construction progress. Record-breaking reservations of PHP 20.6 billion were also achieved, marking a 14% increase from 2022's PHP 18 billion. This increase adds to our pipeline of future revenues.
The listed company launched ten new projects in 2023, with a collective value of PHP 18.7 billion and offering 4,249 units. These projects achieved an impressive 63% sell-out rate with less than a year in the market. Completed projects are already 97% sold out, resulting in a blended total portfolio sell-out rate of 93%.
CLI's recurring income projects, particularly hotel operations and leasing, also saw impressive growth rates. The company's hotel operations grew by 66% to PHP 139 million, and leasing increased by 42% to PHP 112 million.
CLI has expanded its hospitality portfolio from a single hotel, Citadines Cebu City, to three, including the recently opened lyf Cebu City in Base Line Center and The Pad Co-Living in Banilad High Street in Cebu. With an initial offering of 180 rooms, CLI now boasts nearly 800 room keys, with seven more hotel projects underway, which are poised to drive future hotel revenue growth.
Additionally, the Gross Leasable Area (GLA) grew to 35,772 sqm from 28,411 sqm, driven by newly completed projects like Banilad High Street, Base Line Center Phase 2, and Retail Pods in Davao Global Township.
Capital expenditures totaled PHP 12.9 billion during the year, with 82% allocated to project development, 6% directed towards land acquisition, and the remaining 12% to investment property.
With the company's consistent double-digit growth and exceptional performance, the CLI Board of Directors approved on March 18 the declaration of a regular dividend of PHP 0.15 centavos per share and a special dividend of PHP 0.03 centavos per share. These dividends will be distributed to shareholders on record as of April 17, with payments scheduled for May 3, 2024. The board's decision reflects CLI's commitment to growing shareholder value since the IPO.
CLI Starts Public Offer Period for Preferred Shares
CLI had a significant milestone with the start of the public offering of its preferred shares totaling PHP 3 billion, with an additional PHP 2 billion oversubscription. The offer period is from March 19 to April 2. Investors of the preferred shares can look forward to attractive dividend yields, with 4-year Series A-1 at 7.585% and the 7-year Series A-2 at 8.25%. The shares will be listed on PSE's main board on April 12, 2024.
The proceeds from the offering will provide CLI with a substantial capital infusion, facilitating strategic initiatives and expansion projects and bolstering its balance sheet for future growth.
CLI signs joint venture agreement with Japan real estate firm NTT UD Asia
CLI also announced its first international partnership, forming a joint venture with Japan-based global real estate firm NTT UD Asia Pte. Ltd. (NTTUDA), a subsidiary of NTT Urban Development Corporation (NTTUD), to establish CLI NUD Ventures, Inc.
The initial project is a PHP6.4 billion, two-tower, Japanese-inspired residential complex in Cebu IT Park, with Tower 1 set to launch by Q4 2024. This collaboration with CLI marks NTTUD's first venture in the Philippines, expanding its global portfolio with mixed-use, office, and residential projects.
CLI Chairman and CEO Jose Soberano III said, "We are bullish that the strategic capital raise through preferred share issuance and our first-ever international partnership would fortify our growth and expansion. This move also strengthens our commitment to delivering exceptional value to our stakeholders as we keep enlarging our business."
CLI's 2024 growth initiatives
CLI has new development in the pipeline worth PHP27 billion, including expansion projects in various regions such as Butuan. For 2024, the company has earmarked PHP 14.5 billion for capital expenditure, with a portion dedicated to land acquisition, particularly for its inaugural Luzon project.
The company's strong financial performance, diversified revenue streams, strategic expansion initiatives, and robust pipeline of upcoming projects position the company for continued growth and success in the coming years.
"Our consistent growth fuels our vision to strengthen the company's current offerings and expand beyond VisMin. This is also a testament to our team's resilience, hard work, and dedication," says Soberano.
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