Cebu Landmasters Inc. (CLI), a listed regional property developer, said its income in the January-to-June period fell 17 percent to P918 million, from last year’s P1.1 billion, as the government-mandated lockdown affected its revenue sources.
Revenues in the first half came in flat at P3.51 billion, from last year’s P3.49 billion, as real estate sales were down 1 percent, but its recurring revenue from hotel operations and rentals more than doubled.
Almost all of the company’s revenues came from the sale of condominium and horizontal residential units.
CLI Chairman and CEO Jose Soberano III said most of their buyers were local residents. Soberano said they were encouraged to purchase homes by the stretched payment terms and grace periods.
The company also said purchases from overseas Filipino workers (OFWs) accounted for only a fifth of the sales in the second quarter, down from as much as 40 percent in previous years.
“We ourselves were surprised by how local demand compensated for the decreased share from OFWs. Home ownership will provide the best security during these times,” Soberano said.
“We are pleased to launch more projects in the second half as our markets have remained committed to their purchases. The pandemic has made many see that owning a home in a safe and secure community is a good way to secure their family’s future.”
CLI said it will continue to serve the undiminished demand for affordable housing in the Visayas and Mindanao with a total of 14 projects in 2020 worth P19 billion. It said four projects in Cebu, Bohol and Iloilo were launched in the first half.
Planning and ongoing construction works for mixed-use development and hotel projects continue with target completion in 2 to 4 years.
To date, CLI said it still has some P2.7 billion to draw from corporate notes available at 3.45 percent fixed for 5 years and 3.56 percent fixed for 7 years.
Soberano said he is confident that the firm is still on track to meeting its target of increasing revenues by about 10 percent, from last year’s P8.55 billion, as the construction of its projects is catching up in the third and fourth quarters.
“Construction sites continue to progress despite the quarantine since Cebu Landmaster’s projects are mostly in cities with minimal quarantine restrictions. By imposing strict health protocols at the job site, we focused on keeping our workers safe and productive. We look forward to handing over units to many of our buyers in the next few months.”