Cebu-based property developer Cebu Landmasters Inc. (CLI) is ramping up its capital spending this year despite uncertainties arising from the Middle East conflict, as it accelerates project development and prepares a multibillion-peso pipeline for launch through 2027, while keeping its long-term real estate investment trust (REIT) option open.
2026 Capital Expenditure Plans
CLI said its 2026 capital expenditure (capex) budget is expected to reach around P20 billion on a consolidated basis, with P12.7 billion or 63 percent earmarked for project development. The remaining amount will fund acquisitions and general capital expenditures. The company plans to launch approximately P48 billion worth of projects through the third quarter of 2027, with Cebu remaining a key market in its pipeline, although specific project details and timelines have yet to be disclosed.
First Quarter Earnings
The expansion plans came as CLI posted consolidated revenues of P6 billion in the first quarter of 2026, up 20 percent from P5 billion in the same period last year, driven by stronger residential revenue recognition from construction progress across ongoing developments. Revenue from real estate sales reached P5.8 billion, supported by percentage-of-completion accomplishments across ongoing residential projects that translated prior-period sales into recognized revenues.
“Our first-quarter results reflect the strength of our residential engine and the continued progress of our ongoing developments across VisMin,” CLI senior executive vice president and chief operating officer Jose Franco Soberano said. The company posted consolidated net income of P1 billion in the first quarter, while net income attributable to parent shareholders reached P881 million.
No Delays in Unit Turnovers
CLI also said it has not seen significant delays in unit turnovers during the first quarter of 2026 despite concerns over the regional power crisis and supply chain disruptions. “We continue to monitor these risks closely and proactively manage them project by project with our contractors and suppliers,” said Soberano, adding that maintaining steady project progress and on-time delivery remains a priority.
The developer said 56 percent of its residential sales in the first quarter were driven by end-user demand from the economic, affordable and mid-market segments, led by its Casa Mira and Garden Series brands. Profitability varies depending on project location, land cost and development stage, although CLI said it aims to maintain healthy gross profit margins through disciplined pricing, cost management and sustained market demand. As of end-2025, CLI’s property-for-sale portfolio comprised 107 projects with 46,194 residential units valued at P176 billion. The portfolio was 92 percent sold.
Radisson Red and Recurring Income
Recurring income streams also expanded during the quarter, with hotel revenues rising 14 percent to P119 million, leasing revenues increasing 14 percent to P60 million and management fees climbing 19 percent to P31 million. CLI recently opened Radisson Red Cebu Mandaue, a 144-room hotel within Astra Centre in Mandaue City, Cebu, as part of efforts to strengthen its hospitality portfolio and diversify recurring income sources.
“Our recurring income portfolio continues to gain traction as more assets come into operation,” Soberano said. CLI chairman and chief executive officer Jose Soberano III said the company would remain focused on disciplined execution and serving housing demand across its markets. On its REIT plans, CLI said a REIT remains a long-term strategic option, although the company’s current priority is to continue expanding and stabilizing its leasing and hospitality portfolio before evaluating the timing and structure of a future offering.
