Wednesday, April 30, 2008 CHI revenues reach P1.28B in ’07 on growth in retail, real estate
CEBU Holdings Inc. (CHI) posted an all-time high performance last year as it earned 24 percent more than its performance in 2006, with P1.28 billion in revenues from the sale of commercial and residential lots as well as the increase in its retail and leasing operations.
The company’s 2007 consolidated income is also 22 percent higher than 2006, at P251.8 million.
“(This) is the highest bottom line since the company’s inception,” president Francis Monera told CHI stakeholders yesterday during the 2008 Regular Annual Stockholder’s Meeting at the City Sports Club.
Gross revenue from Ayala Center Cebu grew seven percent higher, having contributed a gross income of P427.7 million to
CHI.
“(This is) a result of higher sales per square meter, rental rate increases and remarkable lease occupancy,” Monera said.
The growth in disposable income of young professionals and the increase of tourists have raised the revenues of the mall and its expansion.
Monera also reported that the Ayala Center Cebu gets 75,000 visitors daily, posting a 19-percent increase in traffic compared to 2006.
In 2007, the gross leasable area of Ayala Center Cebu mall increased by 5,800 square meters due to the expansion building, which houses 50 new shopping concepts.
At present, the total gross leasable area of the whole Ayala Center mall is more than 86,000 square meters.
The company has identified tourism and information and communication technology (ICT) sectors as areas where CHI has focused its efforts, resulting in its “remarkable performance.”
Monera said tourism and ICT, which he refers to as “twin-win industries,” will continue to present opportunities for economic growth.
In his report, Monera said the buildup in the Cebu Business Park continues with the completion of four new buildings. This
includes the Pioneer House, Cebu I.T. Tower, Security Bank and Lexmark.
“More structures are underway,” said Monera, citing the ongoing construction of Lexmark’s second building, Creativo, RCBC Bank and Tower Palace.
The current expansion developments at the Ayala Center Cebu’s lagoon area will also soft-open by the third quarter of this year.
The lagoon redevelopment will take up the bulk of CHI’s capital expenditure (capex) for this year, which is at P962 million—88 percent higher thanthe 2006 capex.
Last year, CHI’s budget for allowable spending was only at P511 million.
Under its residential venture, Monera said the Amara—a high-end residential project in Liloan, Cebu—continues to lead in
market sales as it surpassed targets “within weeks from being offered to the public.”
Last year, the Amara phase two lots were sold out while 58 percent of the third phase’s inventory was already taken up by yearend.
Sales from Amara accounted for P222 million, or 17 percent of the company’s total revenue.
To date, only 12 lots are available in Amara’s inventory.
CHI also reported that its stock price has also increased from P3.20 per share in 2006, it closed at P3.60 per share last year.
“This is 10 times its value five years ago,” Monera said.
Last December, the company also declared a cash dividend of five centavos per share or a total of P96 million.
CHI’s total assets are reported to be at P5.3 billion while equity level amounts to P3.7 billion. The company disclosed a bank debt of P330 million at the end of 2007. (DME)
