Leading real еstatе firm’s profit over 100% on strong sales, success of initial 3-year growth plan
Property developer and publicly-listed firm Century Properties Group, Inc. (“Century”) posted a breakout year in 2012 on back of record sales performance of its master-planned community developments in Metro Manila and the successful implementation of an initial three-year growth plan from 2010 to 2012 that catapulted the Century brand into becoming a formidable player in the property industry.
In a briefing with analysts and business reporters on April 5, 2013, Century Properties Chief Financial Officer Jose Carlo R. Antonio said that the sustained year on year upward trajectory of pre-sales, revenues and net income, as well as its ability to secure financing from both the equity and credit markets, have successfully laid the foundation for Century’s second stage of growth.
“The years 2010 to 2012 were a transformative three years for us. On top of Century’s financial growth, we also achieved other key milestones. Quite notably, we established an industry-leading international sales platform and created a balanced portfolio of developments for the luxury, middle-income and affordable segments. We introduced unprecedented development collaborations with global brands, listed the company in the Philippine Stock Exchange, successfully raised equity capital thrice since 2011 raising a total of P5.6B, expanded our relationships with 11 financial institutions that have extended P6.6B of credit facilities, and progressed from developing stand-alone projects to master-planned communities. Century is now well set for the next phase of its growth.” he said.
Antonio shared that the second stage of growth started this year and is targeted to conclude by 2015—Century’s 30th year in the real еstatе business. This stage targets the following objectives:
1. To hit pre-sales of Php 30 billion by 2015;
2. To achieve post-tax profit of Php 3 billion by 2015; and,
3. To further strengthen the company’s business model by what the company calls “The Essentials”, which include emphasis on leadership, innovation, sustainability, and exposure.
Another thrust for the company on stage two is to expand its business portfolio into leasing income by allocating land for 100,000sqm of commercial properties, as well as develop projects in key growth cities outside Metro Manila.
“The 2012 financial results reflect the culmination of Century’s sustained performance over the last three years, and we are very happy to share this success with our shareholders,” said Century Properties Executive Chairman of the Board Jose E.B. Antonio. “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.”
FY12 Financial Highlights based on audited figures are:
- Pre Sales – Century’s pre-sales data indicated that it pre-sold Php 21.4 billion for the full year 2012, which represents a 16.6% growth over its Php 18.4 billion pre-sales for the full year 2011, with an industry leading 74% coming from the international market. 24%, 33% and 43% of 2012 pre-sales was from the luxury, middle income, and affordable markets respectively.
- Revenues – Total revenues for the year ended December 31, 2012 amounted to P9.61 billion, an increase of 104% from the year before.
- Gross Profit from Real Еstatе Development grew 131% to P4.04 billion from P1.75 billion in 2011.
- EBITDA grew 88% to P2.58 billion from P1.37 billion in 2011.
- Net Income – Net income at the end of 2012 was P1.84 billion, compared to P866 million at the end of 2011, representing an increase of 114%.
- Cash – As of December 31, 2012, cash and cash equivalents were P902 million.
- Total Equity – Total equity at the end of 2012 stood at P8.27 billion compared to P4.33 billion the year before
- Net Debt/Equity – Net debt over equity at the end of 2012 stood at 33% compared to 12% the year before, and well within the company’s estimated optimal level.