Cebu Landmasters 2023 net income up 29%, announces first ever international partnership

March 25, 2024March 25, 2024 Migo V. 0 Comments

CLI 2023 posted 29% increase in net income, offers preferred shares, and a 6.4B joint venture a Japanese-inspired residential development in Cebu IT Park

Cebu Landmasters recently opened 3 hotels including lyf Cebu City with 159 rooms, bringing its total number of operational rooms to 338, including 180 rooms of Citadines Cebu City. Both lyf and Citadines are in CLI’s mixed use property Base Line Center (photo above). The listed company now boasts nearly 800 room keys, with 7 more hotel projects underway poised to drive future hotel revenue growth.

Leading developer in Visayas and Mindanao Cebu Landmasters Inc. (CLI) posted a 29% increase in consolidated net income year-on-year, to PHP 4.64 billion. CLI also recorded significant growth in net income to its shareholders, up by 13% to PHP 3.58 billion from last year’s PHP 3.17 billion. The growth is attributed to a solid 20% increase in consolidated revenue, reaching PHP 18.8 billion across all revenue streams mainly from real estate sales revenues, and also includes hotel operations, and leasing.

This is on the back of strong demand for the listed company’s residential properties and its diverse and dynamic business portfolio.

CLI has expanded its hospitality portfolio from a single hotel Citadines Cebu City to now 3 including the recently opened lyf Cebu City in Base Line Center, and The Pad Co-Living in Banilad High Street in Cebu. With an initial offering of 180 rooms, CLI now boasts nearly 800 room keys, with 7 more hotel projects underway poised to drive future hotel revenue growth.

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 PHP 0.15 centavos per share, along with a special dividend of PHP 0.03 centavos per share. These dividends will be distributed to shareholders on record as of April 17, with payments scheduled on May 3, 2024. The board’s decision reflects CLI’s commitment in growing shareholder value since the IPO.

CLI Starts Public Offer Period for Preferred Shares

CLI had a significant milestone with the start of public offering of its preferred shares totaling PHP 3 billion, with an additional PHP 2 billion oversubscription. The offer period is from March 19 to April 2. Investors of the preferred shares can look forward to attractive dividend yields, with 4-year Series A-1 at 7.585% and the 7-year Series A-2 at 8.25%. The said shares are scheduled to be listed on PSE’s main board on April 12, 2024.

The proceeds from the offering will provide CLI with a substantial capital infusion, facilitating strategic initiatives, and expansion projects, and bolstering its balance sheet for future growth.

Cebu Landmasters recently opened 3 hotels including The Pad Co-Living in Banilad High Street (photo above) with 258 rooms, bringing its total number of operational rooms to 338, including 180 rooms of Citadines Cebu City. CLI now boasts nearly 800 room keys, with 7 more hotel projects underway poised to drive future hotel revenue growth.

CLI signs joint venture agreement with Japan real estate firm NTT UD Asia

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

The initial project is a PHP6.4 billion, two-tower, Japanese-inspired residential complex in Cebu IT Park, with Tower 1 set to launch by Q4 2024. This collaboration with CLI marks NTTUD’s first venture in the Philippines, expanding its global portfolio with mixed-use, office, and residential projects.

CLI Chairman and CEO Jose Soberano III said, “We are bullish that the strategic capital raise through preferred share issuance and 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.”