ECONOMIC RECOVERY. Photo shows Cebu City's business district. Property developer Cebu Landmasters Inc. said the rollout of vaccines is driving optimism for recovery in the country’s key economic sectors, including real estate. (PNA photo by Carlo Lorenciana)
CEBU CITY – Property developer Cebu Landmasters Inc. (CLI) has expressed that the rollout of the vaccines is driving optimism that business activity would step up moving forward, paving the way for the country’s full economic recovery.
This was expressed by CLI chief operating officer Franco Soberano on Monday as he reported the company’s positive first-quarter earnings, driven by the improving business environment and sustained demand for housing amid the pandemic.
“While there is still considerable work to be done to finally lay this pandemic to rest, we see light at the end of the tunnel and are preparing for improved economic activity. In fact, CLI has set for itself a growth target of 15 to 20 percent this year,” Soberano said in a virtual press briefing.
Soberano said once lockdown measures were eased towards the end of 2020, CLI quickly responded by stepping up activity to 95 percent in most of its construction sites.
He said mobility issues are no longer pronounced in the Visayas and Mindanao (VisMin) regions where coronavirus disease 2019 (Covid-19) infections have remained relatively manageable.
Cebu City, the largest metropolis in southern Philippines, for instance, was experiencing low infection rates in the past weeks, which its medical facilities could easily address, he said.
“We are pleased that our teams in each of the cities we serve have stepped up to fill the pressing need for residential units that deliver quality, safety and security. This need was especially highlighted by the pandemic,” he added.
Even prior to Covid-19, VisMin’s housing backlog had been consistently underserved. Today, there is a backlog of 800,000 units a year with the industry supplying only 200,000.
CLI delivered robust growth in the first quarter of 2021, posting a 25 percent year-on-year increase in net income of PHP714 million.
Meanwhile, consolidated net income grew year-on-year by 12 percent to PHP725.2 million on the back of consolidated revenues of PHP2.35 billion, which is 11 percent more than year-ago figures.
The Cebu-based developer attributed its exceptional first-quarter performance to sustained construction activities and the strong sales take-up of its residential projects in key cities of VisMIn.
Moreover, the firm’s growth momentum is expected to speed up in the second half of the year as CLI’s joint ventures mature for revenue recognition, Soberano said.
CLI is set to produce fresh inventory in the next three quarters of its 2021 projects remaining in the pipeline.
The listed company is set to roll out PHP14 billion worth of projects this year.
CLI has so far launched three projects from January to March worth PHP4.9 billion which boosted reservation sales to PHP3.3 billion or 17 percent more year-on-year.
CLI focused its capital expenditures in the first quarter this year mostly on project development.
Land acquisitions have been scheduled for the rest of the year. (PNA)
