CENTURY Properties Group Inc. (CPG) on Tuesday said its net income rose by 72 percent last year to P1.1 billion, from the previous P650 million as it was able to finish several of its projects.
The company also increased its revenues by 60 percent to P10.7 billion against the previous P6.7 billion, driven by the completion of three residential buildings, an office tower and 259 affordable housing units.
The company said it is allocating P8 billion to P10 billion for its capital expenditures this year to cover its residential and office development projects, as well as land acquisition to be funded equally from internal and external sources.
For 2019, it plans to complete four more residential buildings with a gross floor area of 134,000 square meters and an office tower with a gross floor area of approximately 95,000 sq m.
The company’s affordable housing unit, Phirst Park Homes Inc., contributed 11 percent of revenue and 23 percent of net income.
CPG’s commercial leasing assets now contribute 9 percent to the 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. CPG’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 of the company’s revenue and income in the coming years, sustaining CPG’s growth momentum,” said Ponciano S. Carreon Jr., the company’s CFO and and head for investor relations.
From being concentrated in 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.
Jose Marco R. Antonio, the company’s co-COO and managing director, said the company will expand its development outside of Metro Manila to sustain its growth.
“CPG is ready to go outside of Metro Manila,” he said.
CPG’s affordable housing business under the brand Phirst Park Homes, a joint venture with Japan’s Mitsubishi Corp. will launch 33,000 units with a 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 sq m to 300,000 sq m of gross floor area by the year 2020 with a target of P1.5 billion in revenues.
Since becoming a publicly listed company in 2012, CPG has completed 24 out of its planned 32 residential condominium buildings with a gross floor area of 1 million sq m.