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Growing property sector drives Cebu Landmaster Q1 profits

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The domestic property sector sustains its upward climb two years after the global health crisis caused by the coronavirus disease 2019 (Covid-19) saw the segment on a steady downward spiral.

In a stock report on Monday, property developer Cebu Landmasters Inc. (CLI) reported a double-digit top line growth in the year’s first quarter, buoyed by the accelerating domestic economy and a surge in real estate sales.

The CLI said that its January to March revenue grew by 53 percent to P3.56 billion from P2.3 billion after all business units posted improvements, nearing its 20 percent growth target for the year.

“We are pleased that we began the year strong with robust sales and swift construction pick up of new projects,” CLI chairperson and chief executive officer Jose Soberano III said.

“We are on track to hit our growth target of at least 20%. We remain ready to make the most of opportunities presented by the fast-recovering VisMin economy,” he added.

Real estate sales soar

According to CLI, real estate sales were the main growth driver. Sales take-up surged to P4.5 billion, or 36 percent higher than last year’s P3.3 billion.

The most significant contributor was The East Village, the first residential project of CLI’s Davao Global Township, named the Best Township in Asia by PropertyGuru Asia Property Awards in 2021.

Three of the residential community’s six towers sold out in four days, prompting the launch of the fourth tower in Q2 2022.

Almost sold out projects

CLI’s rental revenues improved by 28 percent, attributable to increases in lease contracts and new tenants in the newly completed Latitude Corporate Center.

Hotel revenue grew fourfold with the reopening of local and international borders, reviving trade and tourism. Meanwhile, CLI’s property management arm posted a 34 percent hike in management fees from newly completed projects.

To date, CLI has sold out 89 percent of all its projects in the various stages of development across VisMin. Completed projects are 96 percent sold out; ongoing developments, 86 percent sold out; and those launched in the first quarter, 80 percent sold out.

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