Century Properties Group Inc. posted a 12 percent increase in net income to P1.06 billion in the first half of 2013 compared to the same period last year, led by strong and sustained residential sales and growing earnings from property management.
Century said its total revenues increased to P5.29 billion, representing a seven percent growth from the first half of 2012.
Execution of the company’s business strategy of having innovative and co-branded projects with renowned designers resulted in Century to be on track to meet its full-year pre-sales target of P24 billion, with a 16-percent jump in pre-sales earnings to P6.3 billion in the second quarter of 2013 compared to the same period last year.
With P5.8 billion in pre-sales during the first quarter of 2013, Century has already reached P12.1 billion in pre-sales for the first half of the year, or more than 50 percent of the full year pre-sales target.
“Successful sales across all of our community developments in Century City in Makati, Azure Urban Resort Residences in Paranaque City, Acqua Private Residences in Mandaluyong City and the Residences at Commonwealth in Quezon City contributed to this boost in earnings.
Our buyers have become increasingly confident with their property purchases as they get to see our developments rising and getting completed on time or ahead of schedule,” said the official statement of Century Properties.
Furthermore, the company has allocated capex of P4.6 billion for the first six months of 2013, on track to meet its P8 billion capex for the full year of 2013.
Despite this record capex, Century’s liquidity has been amply sufficient given it has been completing projects, yielding full collection of its receivables.
Of the buyers who have fully paid for their purchases, approximately half of them have fully paid in cash, with the balance funded via mortgages from 12 partner banks. This has led to Century’s cash flow from operations, before interest and taxes, to be P191 million for the six months ending 2013.
Adding its successful fund raising from a P1.6-billion equity placement in March of 2013, and the closing of a P4.2-billion syndicated credit facility with Standard Chartered Bank bringing its total gearing to P10.1 billion, Century is poised to take advantage of market opportunities as the needs arise.
Century Properties said the strong financial results has set the proper course towards achieving its targets for its second stage of growth, which aims to hit P30 billion in pre-sales and P3 billion in net income by 2015.
Source: The Daily Tribune | August 19, 2013