MANILA – Century Properties Group Inc is gearing up for the next stage of growth after reporting that its net income more than doubled last year on the back of record sales.
In a briefing last Friday, Century Properties chairman and president Jose EB Antonio said the real еstatе firm targets to grow pre-sales to P30 billion and hit a profit of P3 billion by 2015, the company’s 30th year in the business.
The financial projections represent a compounded annual growth rate (CAGR) of 15 percent over the three-year period, Antonio said.
“With a healthy economic backdrop underscored by the recent upgrade of the Philippines to investment grade, we are 92 percent sold on 13,370 units we have opened for sale, and are set to complete six buildings with 375,093 square meters by December 2013 alone. Our optimism remains very high for the property sector,” he said.
To achieve its targets, Century Properties must post P85 billion in aggregate sales for the three-year period. Its inventory is valued at P110 billion, P70 billion of which will be from projects under its land bank and P40 billion from existing projects.
Built-in un-booked revenues, completion of projects, un-launched projects from its existing master-planned communities and projects from new land bank will support the attainment of its P3-billion net income projection. By 2017, Century Properties will have 23 buildings with 850, 000 square meters, 48 percent of which should be completed by 2015, Antonio said.
Another thrust on the second leg of its growth plan is to expand its business portfolio by venturing into leasing, which is seen to account for at least 10 percent of the business by 2015. Century Properties is allocating land for 100,000 square meters of commercial properties, mainly from Century City, as well as develop projects in key growth cities outside Metro Manila.
The company capped its initial three-year growth plan that commenced in 2009 with a 114 percent surge in net income to P1.86 billion last year from P866 million in 2011, doubling revenues to P9.6 billion.
Century Properties grew its pre-sales by 16.6 percent to P21.4 billion last year from P18.4 billion in 2011, overshooting its P20-billion target. Bulk of the sales or 74 percent came from the international market.
Century Properties closed the initial leg of its expansion plan with a CAGR of 63 percent in pre-sales, 77 percent in revenues and 221 percent in net income, Antonio said.
“The 2012 financial results reflect the culmination of Century’s sustained performance over the last three years…We look at 2012 as a remarkable breakout year for Century with a solid platform that will enable us to take the company to an even higher level,” Antonio said.
Jose Carlo Antonio, Century Properties co-chief operating officer, said the company will launch 8-9 projects this year, including three buildings from The Residences at Commonwealth in Quezon City, two from Azure Urban Residences and one from Acqua Private Residence. It is also developing plans for two projects in Century City and preparing the master plan for the Novaliches property, slated for launch late this year.
Source: Interaksyon | April 7, 2013