Contributions from affordable housing, commercial leasing businesses quadrupled to P173M
[June 8, 2020] Listed property developer Century Properties Group, Inc. (CPG:PM) posted a net income of P290 million and consolidated revenues of P2.8 billion in the first quarter of 2020.
The lion’s share of the net income comes from the combined contribution of affordable housing business and leasing portfolio, which now stands at P173 million or 60% compared to just P55 million or 14% last year. The net income contribution of urban vertical projects is down to only P111 million or 38% of the total net income from P324 million or 84% share in net income last year.
“The lower net income in the first quarter of 2020 was not totally unexpected considering the three major shocks during the period: the Taal eruption in January, the coronavirus pandemic declaration in February, and the Enhanced Community Quarantine declared in March, coupled with the company’s beefing up its cash war chest. We managed to sustain the level of our revenues with a more impressive mix with the affordable housing business and leasing portfolio now contributing a combined revenue of P817 million or 29% of the pie compared with just P200 million or 13% of revenues for the same period last year,” said Ponciano S. Carreon, Jr., CPG’s Chief Finance Officer and Head of Investor Relations.
The company’s total assets stood robust at P54.6 billion or P1.2 billion higher than December 2019 while interest bearing liabilities went down by P1.4 billion at the end of first quarter. This brought the balance sheet to healthier levels with debt to equity down to 0.8x from 1.0x while the current ratio is up at 2.4x from 2.1x from last year.
“The strong 2019 performance and 1Q2020 balance sheet serve as strong foundations for the group to adopt needed structural and operational adjustments and business flexibility amidst the current economic disruptions. We are also taking advantage of the opportunity to be ready for another take-off. We expect our high-margin affordable housing and leasing revenues to further grow and boost our bottom-line margins,” Carreon further said.
The company also launched efforts in the past two and half months to protect the welfare of its employees, construction workers, and other stakeholders, and contributed to increase the country’s testing capacity for COVID-19 with the conversion of the Philippine Arena Sports Stadium in Bulacan into a mega testing facility with the Bases Conversion and Development Authority. #