Century Properties seeks to refinance debt

LISTED Century Properties Group, Inc. (CPG) plans to raise funds through long-term facilities next year to refinance debt, according to a company director.

The property developer seeks to continue expanding by maintaining a healthy balance sheet, CPG Director Jose Carlo R. Antonio said at the company’s annual stockholders meeting on Thursday.

“For 2021, we are focusing on the company’s balance sheet by refinancing our short-term loans with longer tenor facilities, and hopefully at lower rates,” he told the virtual meeting.

Century Properties is also looking at operating expense savings and boost collections as it focuses more on the affordable and leasing asset segments, he added.

The company is unlikely to replicate this year growth in recent years because of the coronavirus pandemic, Mr. Antonio said.

First-half profit fell by 36% to P458.13 million as sales declined by a fourth to P4.52 billion. Second-half figures are expected to improve as construction resumed at all CPG sites, he said.

“We will continue to diversify our portfolio toward our original goal of balanced contributions from our three business segments,” CPG President and Chief Executive Officer Jose Marco R. Antonio said at the same meeting.

These segments are affordable housing, commercial leasing and in-city vertical developments.

“Planning for future projects and new business are under way so we can seize opportunities at a much quicker pace when the market recovers,” he added.

In recent years, CPG has focused on raising revenue and income contributions from the affordable housing and commercial leasing segments to balance its asset portfolio.

“We see these two segments to contribute about a third each to our total revenue and income for the company,” CPG Chairman Jose E.B. Antonio said.

The two segments contributed P225 million in the first half, accounting for 42% of the total from just 29% a year earlier.

The company has increased its office leasing portfolio through the buyout of its joint-venture partner in Century Diamond Tower, an office building in Makati City. The deal adds 25,000 square meters of floor area to CPG’s leasing portfolio.

Later this year, CPG will start its seventh affordable housing project in Pampanga province through unit PHirst Park Homes, Inc., which will offer more than 500 house and lot units.

CPG shares gained 4.29% or 1.5 centavos to close at 36.5 centavos each on Thursday. — Denise A. Valdez