CLI sets P8-billion capex for second half

CEBU Landmasters, Inc. (CLI) is expecting to spend the remaining P8 billion of its P13-billion capital expenditures (capex) budget in 2022 for property development and land acquisitions in the second half.

“The second half will be more busy, more productive for us. We are really expecting to spend the P13 billion that we’ve set to spend in capex this year with some key acquisitions in the second half,” CLI Chief Operating Officer Jose Franco B. Soberano said in an online media briefing on Friday.

In the first half, the company’s capital spending reached P5.52 billion: P3.81 billion for residential development, P1.23 billion for land acquisition, P345 million for property investment, and the rest for other expenditures.

In real estate, the company reported that it has 35 ongoing projects with a P64.64-billion sales value.

Meanwhile, in its office and retail segment, it has Astra Lifestyle Mall Cebu, which will have 8,308 square meters (sq.m.) in gross leasable area (GLA) that it expects to be completed next year; and Patria de Cebu, which will have 21,000 gross floor area that it expects to be completed in 2024.

By 2025, the company expects its gross leasable area to reach 200,000 sq.m. from 28,400 sq.m. at present.

In its hotel and recreational segment, CLI has Base Line Prestige located in Base Line Center in Cebu, which is a project with Lyf of Ascott Ltd. that it expects to be completed in 2022.

In 2023, the company expects the completion of Radisson RED Hotel in Astra Centre in Cebu, Citadines in Bacolod City, and The Pad Co-Living in Cebu. 

The company also disclosed that it will be launching P22-billion worth of projects all over the Visayas-Mindanao area.

Among these pipeline projects are the: P2.2-billion Casa Mira Homes and P1.5-billion Velmiro Heights in Magtuod, Davao; P1.25-billion Costa Mira Beachtown Mactan Tower 3, P1.5-billion Mandtra Residences, and P2.5-billion Calle 104 Towers 1 and 2 in Cebu; P1.96-billion Casa Mira Towers 1 and 2 in Palawan; and P1.3-billion Costa Mira Beachtown Panglao Towers 1 and 2 in Bohol.

In the third quarter, CLI will be starting the construction of a project near Xavier University – Ateneo de Cagayan that will break ground next month.

“We acquired a 14.3-hectare township property and adjacent to it will be the new location of Xavier University,” Mr. Soberano said.

CLI Chief Finance Officer Beauregard Grant L. Cheng said that by the end of 2022, the company expects a 20% earnings growth versus last year.

“This is a number that we will comfortably hit if not exceed,” Mr. Cheng said.

In the first half, CLI reported a 39.6% increase in its attributable net income to P1.55 billion from P1.1 billion last year.

Its topline surged by 45% to P7.5 billion in the first six months with the continued buildup of P27 billion of unrealized revenues.

On the stock market on Friday, CLI shares rose by 1.2% or P0.03 to P2.52 apiece. — Justine Irish D. Tabile