Lockdown hits Century Properties net income

CENTURY Properties Group, Inc. (CPG) posted a 37% earnings drop in the second quarter as its sales and construction activities were disrupted by the lockdown to contain the coronavirus outbreak.

In a regulatory filing on Tuesday, the property developer said it booked an attributable net income of P223.69 million in April to June, down from P352.7 million in the same period a year ago.

Consolidated revenues slid 48% to P1.72 billion, as sales activities were tempered by the strict lockdown in April and May.

This brought CPG’s year-to-date attributable net income down 36% to P458.13 million, as total revenues fell 25% to P4.52 billion.

By business segment, real estate revenues dropped 28% to P3.88 billion due to the slowdown in sales conversion and construction activities during the period of the quarantine.

But the leasing segment stood resilient, posting a 40% revenue growth to P347.27 million due to recognitions from its initial leased out spaces in Century Diamond Tower and Asian Century Center.

“Despite the dip in the revenues and net income…, the trajectories are well within the management’s expectations in view of the present market and business conditions,” CPG Chief Finance Officer Ponciano S. Carreon, Jr. said in a statement.

The company noted its horizontal affordable housing and commercial leasing businesses now account for 42% of its net income, up from 29% last year, which is in line with its strategy of balancing its asset portfolio and diversifying revenue streams.

“We are prepared for the unfavorable impact of the current situation… and we have quickly put in place mitigating measures to build robust liquidity levels and a strong balance sheet…,” Mr. Carreon said. “[P]reparations are ongoing to position the group for the new market and business opportunities.”

CPG is now practicing digital selling and online transactions to continue generating sales despite the quarantine protocols. It said half of its sales processes were done online during the first half, and 64% of unit turnovers were done through virtual platforms starting June.

“We are addressing pain points of customers and the need for safer means of delivering our services… We are pleased with how our clients have responded, and how they have prioritized placing their hard-earned cash in real estate assets during this time…,” Mr. Carreon said.

Shares in CPG at the stock exchange closed flat on Tuesday at 36 centavos apiece. — Denise A. Valdez