Century Properties nets P1.5B
PROPERTY developer Century Properties Group (CPG) saw a 29.6 percent decline in net profit last year to P1.53 billion due to the drop in revenues from residential development.
The group recorded revenue from real estate sales amounting to P7.75 billion, 28.3 percent lower than the level in 2014, CPG said in a regulatory filing posted on Monday.
“The decrease in real estate sales is attributable to less revenue recognized in 2015 for projects that turned over in 2015 and prior years. A significant portion of revenue from these projects were already recognized in 2014 and prior years. In addition, there were less project launches in 2015,” the company said.
But CPG reported an increase in leasing revenues to P311.7 million last year from P207 million in the previous year as the group booked earnings from the first full year of operations of Century City Mall last year. Makati’s newest mall opened in March 2014.
Capital expenditures from 2016 through 2020 are estimated at P25 billion, consisting of both capital outlays for residential and leasing assets.
From 2016 through 2019, CPG expects to deliver another 20 towers comprising of close to
10,300 residential and units, gross floor area of 751,000 square meters (sqms) and total sales value of about P58.95 billion. These projects are 95 percent sold.
By 2019, CPG also plans to have around 234,000 sqms of office and retail space for lease. In 2015, Century forged a strategic partnership with leading Japanese conglomerate Mitsubishi Corporation to develop the world’s first Forbes Media Office Tower in Century City Makati.
“We remain positive about the property sector and believe that the steps we have undertaken will pave the way to achieving our future plans. Our growing financial strength and 30-year experience in the industry help ensure that we are adapting to the needs of the market and maximizing the potential of our growth priorities,” said Kristina Garcia, CPG’s director for investor relations.
At the end of 2015, the company had total assets of P37.48 billion and total equity of P14.63 billion. Retained earnings stood at P5.96 billion. The company has also issued cash dividends equivalent to 10 percent of net income for the past three years.
From 2014 to 2015, cash flows from operating activities improved by P1.98 billion. Likewise, cash provided by financing activities improved, with P1.53 billion less financing required compared than the prior year, in relation to the improvement in cash flow from operating activities.
Project completions at the company’s six master-planned developments are seen on track. At its flagship Century City in Makati City, CPG has completed three residential towers and two commercial projects, Century City Mall and Centuria Medical Makati. Another five towers have been delivered at Azure Urban Resort Residences in Paranaque City, two at Acqua Private Residences in Mandaluyong City, and one at the Residences at Commonwealth in Quezon City.
In 2015, CPG turned over a total of 3,068 units, 234,000 sqms of gross floor area – with P15.2 billion in total sales value – in six residential towers.
In addition, new housing units continue to be built at Century’s Canyon Ranch in Carmona,
Cavite. On-site ground works are also continuing at The Residences at Azure North in San Fernando, Pampanga in preparation for land development and the subsequent construction of its first two towers, CPG said.
