Century Properties Group, Inc. (PSE:CPG) sustained its solid performance in the first nine months of 2022, in synch with the country’s economic recovery, amid lingering geopolitical and macroeconomic concerns. CPG’s consolidated revenues for the first nine months of 2022 increased by 35% to P8.75 billion from P6.48 billion in the same period last year. For the third quarter, the company registered its consolidated revenues at P3.43 billion, 71% higher year-on-year.

“The acceleration of business activity as the Philippine economy reopened allowed the Company to generate higher earnings during the nine-month period. The demand for our residential projects, especially for affordable housing in key growth areas outside of Metro Manila remained strong despite rising inflation and interest rates,” said CPG Chief Finance Officer Ponciano S. Carreon, Jr.

PHirst Park Homes, Inc. (PPHI), CPG’s affordable housing segment under a joint venture with Mitsubishi Corporation, contributed P4.17 billion or 48% to total revenues. CPG’s vertical development segment’s contribution to revenue amounted to P3.27 billion or 37%, while its leasing segment contributed P999 million or 11%. The balance of 3% came from its property management business.

The Company launched Phirst Park Homes Naic, in Cavite in March 2022 and Phirst Park Homes Balanga, in Bataan in April 2022. One more Phirst Park Homes project in Central Luzon will be launched within the year. With 12 affordable housing projects already launched, PHirst Park Homes is fast approaching its target of launching a total of 15 projects by 2023.

As of September 2022, it has already completed 5,272 affordable houses, 3,575 of which have already been turned over.

PHirst Park Homes now forms part of an expanded mother brand named PHirst, which is set to serve different market segments of first home-buyers, including socialized housing, which has units priced at P580,000, economic housing with units ranging from P800,000 to P1.7 million, affordable housing with units ranging from P1.7 million to 3.2 million and middle income, priced from P3.2 million to P6 million. It recently launched PHirst Editions Batulao, a 14-hectare mid-income horizontal housing project which has a projected sales value of P3.1 billion.

“This strategy allows us to address demand coming from a demographic of the first homebuyers market that has a broad range of purchasing power,” CPG President and Chief Operating Officer Marco R. Antonio said.

Further supporting the company’s growth plans, Century Properties Group also launched Century Nuliv, the company’s new brand that caters to the premium-to-luxury real estate market. Its first project is the low-density, low-rise exclusive collection of premium townhouses called the Century Nuliv Townvillas at Acqua, located within the Acqua Private Residences community on the border of Makati and Mandaluyong cities. It has a projected sales value of P1 billion.

“While we are steadfast in our pursuit of growth, we are doing so with projects that carry less risk but with faster development periods,” Antonio added.

CPG’s earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 48% to P1.91 billion from P1.29 billion in the same period last year. Its EBITDA for the quarter reached P741 million, 76% higher than P422 million in the third quarter of 2021. Its net income for the first nine months of 2022 increased by 6% to P1.14 billion from P1.08 billion in the same period last year. For the third quarter of 2022, the Company’ s net income amounted to P594 million, an 86% increase from its level a year ago.

With sound debt management and adherence to prudent financial controls, the Company’s total debt decreased by P1.34 billion as it redeemed maturing bonds and repaid loans. The decrease in total debt and the significant increase in EBITDA of CPG resulted in a Debt to EBITDA ratio of 6.6x, a remarkable improvement from 10.7x. Also, despite the higher interest rate environment, the Company’s average cost of borrowings is still lower at 5.5% in September 2022 compared with 5.9% in December 2020. CPG’s debt mix is also better with 62% fixed interest rate and 38% floating interest rate, versus 52% fixed and 48% floating two years ago.