CLI posts P14.25 billion reservation sales in 2020

CEBU, Philippines —  Publicly-listed Cebu Landmasters Inc., (CLI) sold over 5000 residential units in 2020 with reservation sales value of P14.25 billion in 2020, a 12 percent growth compared to 2019 performance.

“2020 was a very challenging year. But we at CLI chose to look at opportunities and focus on the brighter side when we could,” CLI chairman and chief executive officer (CEO) Jose Soberano III said addressing the company’s shareholders during yesterday’s Annual

Stockholders Meeting (ASM) held virtually.

Soberano cited the firm’s heavy investment early on during the pandemic in establishing a strong digital presence that would allow clients here and abroad to select units all the way to making reservation payments.

Its online platforms and flexible payment terms were largely responsible for the company’s record reservation sales of P14.25 billion in 2020, he told shareholders.

With homes becoming the center of attention during and after pandemic, as it becomes an office, classroom, also replacement dining and entertainment destinations, demand for new normal homes is expected to double or triple onwards.

With encouraging reservation sales performance in 2020 even amid the economic slump brought about by the pandemic, Soberano announced that the company will build additional 7,500 residential units in Visayas and Mindanao, of which design and aesthetics will meet the new lifestyle after pandemic, added Soberano.

This year, the company will launch 25 projects, 15 of which target the economic and mid-market residential segments in the region and are collectively valued at P19 Billion.

The company has set aside P12 billion for its capital expenditures for the year.

Consequently, CLI is setting its sights on a 15 percent to 20 percent increase in revenues from the P8.3 billion in consolidated revenues it registered in 2020, closely matching 2019’s P8.5 billion.   

“Our 2021 projects will expand our VisMin footprint to cities like Ormoc, Bohol, Bacolod, Dumaguete, Iloilo and other key cities in the region while further strengthening our market share in Cebu and Cagayan de Oro where we have established a strong presence,” Soberano further revealed.

At the same time, the firm is confident it will complete ongoing residential and other projects totaling 33 including mixed-use developments, hotels and townships. A significant number of these will mature for greater revenue recognition before the year ends.

As of Q1 2021, CLI posted a 25 percent year-on-year increase in net income attributable to CLI shareholders from P572 million to P714 million.

Consolidated net income likewise grew 12 percent. This was due to strong sales take-up of its residential projects and unhampered construction activity bolstered by CLI’s financial assistance totalling P12.5 million to its 5,000 third-party construction workers in 2020.

As CLI prepares to further strengthen its capital base, the Company applied to increase its authorized capital stock to P10 billion, and subsequently will issue a 123 percent stock dividend.

Last May 21, the company received SEC’s approval for the increase in authorized capital, which will be the source of the stock dividends. And yesterday (May 26), the SEC has approved the issuance of such shares to pay the stock dividends. The record date will be on June 18 and payment date will be no later than July 14, 2021.