Affordable housing, commercial leasing businesses contribute 44% to net income
[May 18, 2020] Listed property developer Century Properties Group, Inc. (CPG:PM) has announced that its net income in 2019 increased by 32.2% to P1.48 billion from P1.12 billion in 2018, on the back of project completions from the company’s residential condominium segment and 44% of combined contributions from its growing horizontal affordable housing and commercial leasing businesses.
CPG also increased its revenues by 34% to P14.32 billion from P10.70 billion in 2018. This was driven by the completion of more than 1,300 condominium units and 866 affordable house and lot units in PHirst Park Homes Tanza (Cavite) and Lipa (Batangas), as well as the company’s commercial leasing properties, including its Asian Century Center office building in Bonifacio Global City and Century City Mall in Makati.
“With CPG’s new business lines affordable housing and commercial leasing taking up 44% of the net income, our company’s financial results for 2019 show that we have kept on track with our strategic business expansion. This is a strong testament of our continued commitment to deliver results and value to our shareholders,” said Ponciano S. Carreon, Jr., CPG’s Chief Finance Officer and Head of Investor Relations.
Net income contributions from residential condominium is at 55% in 2019 against the previous year’s 76%. Horizontal affordable housing posted a 25% contribution versus 17% in 2018, while leasing is now at 19% compared to 5% in the previous year. The balance contribution comes from the company’s property management business.
CPG aims to grow horizontal affordable housing and commercial leasing in the medium term to achieve a healthy balance of revenue mix with its vertical developments business. The company undertook a business expansion program in 2014 to serve unmet market demand and diversify revenue streams.
“The company’s balance sheet remained strong with total assets expanding 8% to P53.4 billion in December 2019 from P49.4 billion a year ago. Total stockholder’s equity also increased 12% to P19.6 billion from P17.5 billion,” Carreon added. “With the success of our company’s diversification strategy, CPG is now in a much better position to sustain growth and take on emerging market opportunities and challenges, and continue improving its operational efficiencies while exercising business prudence and maintaining a healthy balance sheet.” #