CENTURY Properties Group, Inc. (CPG) saw its attributable profit surge by 108% in the second quarter of 2019, driven by higher contribution from its affordable housing segment.
The Antonio-led property developer told the stock exchange its net income attributable to the parent hit P336.75 million in the three months ending June, following a 59% increase in revenues to P2.67 billion.
This brought net income attributable to the parent to P704.56 million during the January to June period, 63% higher year on year. Six-month revenues were also up 24% to P5.45 billion.
“We expect this positive momentum to continue as revenues from our expansion plans have started contributing significantly and steadily to CPG’s bottom line even as our existing in-city projects still significantly provide a stable revenue stream,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in a statement.
Mr. Carreon said the affordable housing business now generates 12% of CPG’s total revenues. This is expected to increase further as they complete more projects within the year.
CPG has partnered with Japan’s Mitsubishi Corp. for PHirst Park Homes, Inc., a company focused on providing affordable housing in the provinces. It plans to roll out 15 masterplanned communities worth P57 billion in the next five years.
Meanwhile, the company booked revenues from three condominium projects worth P7 billion completed in 2018. This includes Boracay Tower in Azure Urban Resort Residences in Parañaque, Osmeña East Tower at The Residences in Quezon City, and Iguazu Tower at Acqua Private Residences in Mandaluyong. It will complete two more buildings in the fourth quarter.
For the office segment, CPG is set to complete the Century Diamond Office Tower in Makati covering 63,110 square meters (sq.m.) in gross floor area (GFA). This is part of the company’s goal to reach 300,000 sq.m in GFA with projected revenues of P2 billion by 2020.
“We expect that the encouraging performance of our core businesses coupled with cost reduction measures and improvement in our operating efficiencies will help sustain our double-digit NIAT (net income after tax) growth for the next three to four years,” Mr. Carreon said.
Shares in CPG dropped a centavo or 1.82% to close at 54 centavos each at the stock exchange on Tuesday. — Arra B. Francia