CENTURY Properties Group Inc. (CPG) on Monday said its net income fell 10 percent last year to P649.92 million, from the previous year’s P726.93 million, due to an increase in general and administrative expense, and an increase in provision for income-tax expenses.
Revenues grew 7 percent to P6.04 billion, from P5.61 billion in the previous year, due to an increase in real-estate sales, growing leasing revenues and property-management fees.
“Our financial results came in as an expected consequence of the early stages of our diversification plan. It was, however, a critical strategy to minimize risk and generate growth moving forward. We remain committed to proceed with the same disciplines of prudence, opportunism and progressive mentality that we have always employed,” the company said.
The company added that its diversification strategy to serve other sectors of the real-estate industry other than the upmarket is starting to bear fruit.
This year the company plans to complete another four buildings with a gross floor area of 135,000 square meters (sq m). By 2020, all its 30 residential condominiums will be significantly completed, while growing by four-folds its leasing assets.
At the moment, it has a gross floor area of about 133,000 sq m of leasing space, and this will increase 302,000 sq m by 2020.
Leasing revenues will also increase over five times to P1.5 billion by 2020, from the current P342 million.
From concentrating on high-rise condominium projects, the company undertook a diversification plan four years ago to include affordable horizontal housing outside of Metro Manila, leisure and tourism developments and for-lease properties.
From its high-rise developments, the company ventured into affordable horizontal housing last year in response to the continued economic growth, the growing middle class, and housing backlog in the country.
In 2017 reservation sales from affordable horizontal housing amounted to P1.42 billion.
Together with its joint-venture partner, Mitsubishi Corp., it launched PHirst Park Homes in Tanza, Cavite, a 26-hectare project that will have a total of 3,000 units in the P1 million to P3 million per unit price range.
Within eight months of the project’s launch, the company sold 92 percent of the first phase and 10 percent of the second phase.
This year it will complete the first 420 units of horizontal homes.
In December last year the company also announced its entry into leisure and tourism through Batulao Artscapes in Batulao, Batangas. Envisioned as a tourist destination for locals and foreigners alike, the 142-hectare site will include a retirement village, hotel, museums, sports and leisure facilities, among others.
CPG has completed 18 residential condominium buildings with a gross floor area close to 800,000 square meters.