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Century Properties net income hits P1.06 B in H1 of 2013

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.

In a statement, Century reported that total revenues increased to P5.29 billion, representing a 7-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 B for the first six months of 2013, on track to meet its P8.0 B capex for the full year of 2013. Yet 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, of note is that 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 positive P191M for the six months ending 2013. Adding its successful fund raising from a P1.6B equity placement in March of 2013, and the closing of a P4.2 B syndicated credit facility with Standard Chartered Bank bringing its total gearing to P10.1 B, Century is poised to take advantage of market opportunities as the needs arise.

Century Properties added that 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. Century reports its current earnings momentum for 2013 as follows:

  • Q2 2013 Revenue of P2.69 B, representing 9.6% growth from Q2 2012
  • Q2 2013 Net Income of P555 M, representing 14.1% from Q2 2012
  • H1 2013 Revenue of P5.29 B, representing 7.2% growth from H1 2012
  • H1 2013 Net Income of P1.06 B, representing 11.8% from H1 2012

“These strong financial results have allowed the company to grow the business on all fronts. The sustained momentum in residential sales drives the completion and delivery of Century projects every few months. It also paved for our foray into the recurring income business and acquire properties in strategic locations for new development projects,” the statement added.

Meanwhile, earnings from the company’s property management arm, Century Properties Management Inc., grew by 26 percent in the first half of 2013 to P138 million from the same period last year.

The company said it is on course in its plans to grow its recurring income with the opening of the P1-billion Century City Mall by the end of the year, as well as the building of new office towers in Fort Bonifacio and Makati, which will be announced in the coming months.

Earlier, Century announced the acquisition of an 8-hectare property in San Fernando Pampanga, which it plans to turn into a mixed-use community of residential, commercial and institutional facilities. Century’s statement said, “The acquisition came at an opportune time given the rapid progress of the Central Luzon region, specifically in terms of attracting major businesses and investments. The region is very much accessible through the improved road networks of NLEX and SCTEX (Subic, Clark, Tarlac Expressway) and its international airports. It is also the second top source of Filipino overseas workers in the country.”

On project completions, the company reported that it is turning over units at the Knightsbridge Residences by the end of this year, following the delivery of the Gramercy Residences in December 2012. Both towers are located in the mixed-use development Century City in Makati.

Century also began turning over in July the first two towers of the Azure Urban Resort Residences, the 6-hectare development that introduced a man-made beach and a beach club designed by Ms. Paris Hilton.

The company plans to turn over 10 more buildings through 2015, including Centuria Medical Makati and Milano Residences at Century City; and towers in Acqua, Azure and Commonwealth.

Century Properties is listed in the Philippine Stock Exchange under the ticker CPG.


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