Century Properties Group Inc. said profit for the first half of the year reached P1.06 billion, up 12 percent from last year’s P946.43 million, driven by strong and sustained residential sales and growing earnings from property management.

The company said total revenues reached P5.29 billion, 7 percent higher than last year’s P4.94 billion.

“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,” the company said in a statement.

For the second quarter alone, the company reported a16-percent jump in pre-sales earnings to P6.3 billion in the second quarter 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,” it said.

“Successful sales across all of our community developments in Century City in Makati, Azure Urban Resort Residences in Parañaque 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,” it added.

The company spent P4.6 billion as capital expenditure (capex) for the period of its P8.0 billion capex plan.

“Century’s liquidity has been amply sufficient given it has been completing projects, yielding full collection of its receivables,” the company said.

“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,” the company said.

This has led Century Properties to be cash flow positive at P191 million for the first half.

“Adding its successful fund raising from a P1.6-B 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,” it added.

Century Properties, meanwhile, said earnings from its property management arm, Century Properties Management Inc., reached P138 million.

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 eight-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.”

Source: Malaya | August 15, 2013