CLI earmarks P14.5B capex for 2024

Business.
Business.(Business File photo)

CEBU-BASED property developer Cebu Landmasters Inc. (CLI) is going to spend P14.5 billion this year as the company further cements its footprint across the country.

A portion of the capital expenditure will be used for land acquisition, particularly for its inaugural Luzon project.

CLI said it has new development in the pipeline worth P27 billion, including expansion projects in various regions such as in Butuan City

in Mindanao.

“Our consistent growth fuels our vision to strengthen the company’s current offerings and expand beyond Visayas and Mindanao,” said CLI chairman chief executive officer Jose Soberano III.

CLI spent P12.9 billion last year, with 82 percent allocated to project development and six percent for land acquisition and the remaining 12 percent for investment property.

Moreover, CLI announced its first international partnership, forming a joint venture with Japan-based global real estate firm NTT UD Asia Pte. Ltd., a subsidiary of NTT Urban Development Corporation to establish CLI NUD

Ventures Inc.

The initial project is a P6.4 billion, two-tower, Japanese-inspired residential complex in Cebu IT Park in Cebu City, with Tower 1 set to launch by the fourth quarter of 2024. This collaboration with CLI marks NTTUD’s first venture in the Philippines, expanding its global portfolio with mixed-use, office and residential projects.

“We are bullish… with our first-ever international partnership would fortify our growth and expansion. This also strengthens our commitment to delivering exceptional value to our stakeholders as we keep enlarging our business,” said Soberano.

2023 performance

The company ended 2023 with a 29 percent increase in consolidated net income year-on-year to P4.64 billion. Its net income to shareholders grew 13 percent P3.58 billion from last year’s P3.17 billion.

The listed company attributed the growth to the 20 percent increase in consolidated revenue, which reached P18.8 billion across all revenue streams mainly from real estate sales revenues, and also includes hotel operations and leasing.

Revenue from real estate sales maintained an upward trajectory, up 20 percent to P18.5 billion, driven by consistent collections and steady construction progress.

The company also posted reservations of P20.6 billion up 14 percent from 2022’s P18 billion.

CLI launched 10 new projects in 2023, with a collective value of P18.7 billion, which translates to 4,249 units. These projects achieved a 63 percent sell-out rate with less than a year in the market.

The firm’s hotel and leasing also logged an “impressive growth” last year. The hotel operations grew 66 percent to P139 million while leasing operations went up by 42 percent to P112 million.

CLI now has three hotels operating in Cebu City—Citadines Cebu City, lyf Cebu City in Base Line Center and The Pad Co-Living in Banilad High Street in Cebu.

Seven more hotel projects are in various stages of development.

Additionally, the gross leasable area grew to 35,772 square meters (sq.m.) from 28,411 sq.m. driven by newly completed projects like Banilad High Street, Base Line Center Phase 2 and Retail Pods in Davao Global Township.

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 P0.15 centavos per share, along with a special dividend of P0.03 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 initial public offering. / KOC

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