Property developer Century Properties posted a 1.9-percent decline in net profit last year to P1.8 billion, citing an increase in income taxes.
But CPG noted that its 2013 revenues reached a record-high level of P10.8 billion, up by 12.5 percent from the previous year.
In a statement, CPG said gross profit from real estate development amounted to P4.2 billion, 6 percent higher than the level in the previous year.
Cash flow as measured by earnings before interest, taxes, and depreciation (Ebitda) rose by 10 percent to reach P2.8 billion for the year.
“From a balance sheet perspective, Century has been able to execute its growth and capex (capital expenditure) program through its increased financial capacity. From only having P2.4 billion in credit facilities in 2011, it currently has P10.6 billion of credit facilities with an average cost of debt of 6.1 percent,” the company reported.
CPG also reported strong sales and healthy collection levels across all its residential segments.
As an indicator of future revenue growth, CPG pre-sold a total of P24.6 billion worth of residential units in 2013, beating its original target of P24 billion. It launched to the property market over 3,400 units last year valued at nearly P20 billion.
CPG said it had sustained its sales growth by offering “differentiated” real estate products through brand collaborations and “unparalleled” amenities and services. It has collaborations with world-renowned brands such as Trump, Versace Home, Armani/Casa, MissoniHome, GE Healthcare, Forbes Media and yoo inspired by Starck.
“We have partnered with these brands because we believe that brands convey quality, credibility, and experience. The strength in our presales is proof of the success of our concept,” said Kristina Garcia, CPG director for investor relations.
Aside from its residential developments, CPG is likewise focused on building its recurring income portfolio. The completion of Century City Mall and its official opening last month marked the initial foray into the recurring income space. The mall has a net leasable area of 17,000 square meters and is expected to generate roughly P100 million in Ebitda within a full year of operation.
By 2018, Century Properties expects to complete five more properties that will generate recurring income: Centuria Medical Makati, which will be completed in 2014; Forbes Media Tower and Century Spire, which will complete the premium office block in Century City that is scheduled for completion by 2018; an office building in Bonifacio Global City to be completed by 2016, and Acqua 6 at its Acqua development in Mandaluyong. The company expects roughly 110,000 sq m of gross floor area from these projects. Doris C. Dumlao