By James A. Loyola
Century Properties Group reported a 72 percent surge in net income to P1.1 billion last year from P650 million in 2017, driven by its in-city vertical developments business and expansion to affordable housing and commercial leasing.
In a press briefing, CPGI Chief Operating Officer Marco Antonio said the company also significantly increased its revenues by 60 percent to P10.7 billion against the previous year’s P6.7 billion.
Revenue growth was driven by the completion of three residential buildings, an office tower and 259 affordable housing units, with the latter’s contribution growing to 11 percent of revenue and 23 percent of net income.
Meanwhile, 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 to the right direction,” said CPGI Chief Finance Officer Ponciano S. Carreon, Jr.
He added that, “Century Property’s expansion into affordable housing and commercial leasing… will contribute a bigger share of the company’s revenue and income in the coming years, sustaining CPG’s growth momentum.”
The company 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.
Carreon said capex will be funded equally from internal and external sources including a planned bond offering that will be launched next week.
CPGI expects its affordable housing business to eventually increase its contribution to about 35 to 40 percent of the company’s consolidated revenues.
On the other hand, the company’s leasable area will grow from 133,000 square meters to 300,000 square meters of gross floor area by the year 2020 with a target of P1.5 billion in revenues.