Century Properties 2018 profit jumps by 72%
Antonio family-led Century Properties Group (CPG) grew net profit last year by 72 percent to P1.1 billion on higher earnings from residential development and commercial leasing portfolio.
To sustain its growth, CPG has earmarked P8 billion to P10 billion for capital expenditures this year to cover residential and office development projects as well as land acquisition.
In 2018, CPG’s revenue went up by 60 percent to P10.7 billion, driven by the completion of three residential buildings, an office tower and 259 affordable housing units, with the latter’s contribution growing to 11 percent of revenue and 23 percent of net income.
Commercial leasing assets contributed 9 percent of CPG’s net income.
“Our very positive results in 2018 are strong indications that our diversification strategy is starting to bear fruit and we are headed in the right direction. Century Properties Group’s expansion into affordable housing and commercial leasing have started to be profitable and we expect this upward trend to continue. These two businesses will contribute a bigger share to the company’s revenue and income in the coming years, sustaining CPG’s growth momentum,” company chief finance officer and head of investor relations Ponciano Carreon Jr. said in a statement.
Previously focused on high-rise residential properties, CPG undertook a business expansion program to diversify into allied areas of real estate. This diversification plan started five years ago, with the goal of serving unmet market demands and increasing revenue streams while maintaining a healthy balance sheet.
CPG’s affordable housing business under the brand PHirst Park Homes, in partnership with the global business enterprise, Mitsubishi Corp., plans to launch 33,000 units with sales value of P57 billion within the next four to five years. It has rolled out communities in Tanza, Cavite; Lipa, Batangas and San Pablo, Laguna with three more sites targeted for launch this year.
The company’s leasable area will grow from 133,000 square meters (sq m) to 300,000 sq m of gross floor area by 2020 with a target revenue of P1.5 billion.
Since debuting on the stock exchange in 2012, CPG has completed 24 out of its planned 32 residential condominium buildings with gross floor area of one million square meters. For 2019, it plans to complete another four residential buildings with a gross floor area of 134,000 sq m and an office tower with gross floor area of about 95,000 sq m. —DORIS DUMLAO-ABADILLA