Century Properties net income drops in 2017 amid diversification
MANILA, Philippines – Antonio-led Century Properties Group Incorporated saw its net income fall in 2017 as its expansion into various real estate markets continues.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, April 16, Century Properties reported a total comprehensive income of P649.9 million for full-year 2017, down from the P726.9 million in 2016.
The property developer attributed the drop to "an increase in general and administrative expenses, and an increase in provision for income tax expenses."
Century Properties pointed out, however, that it generated total revenues of P6.04 billion in 2017, up from P5.61 billion in 2016, due to an increase in real estate sales, leasing revenues, and property management fees.
It also noted that its creditors have increased from 11 in 2012 to 16 currently, while the cost of debt has declined from 7.5% to 6.4% over the same period.
Century Properties director for investor relations Kristina Garcia said in a statement that the firm's performance was expected.
"Our financial results came in as an expected consequence of the early stages of our diversification plan. It was, however, a critical strategy to minimize risk and generate growth moving forward," Garcia said.
"We remain committed to proceed with the same disciplines of prudence, opportunism, and progressive mentality that we have always employed," she added.
From its high-rise developments, Century Properties ventured into affordable horizontal housing last year in a bid to tap the country's growing middle class and housing backlog.
This kicked off in February 2017 with the launch of PHirst Park Homes Tanza in Tanza, Cavite, a joint venture with Mitsubishi Corporation.
The 26-hectare project is planned to have a total of 3,000 units in the P1-million to P3-million price range.
Century Properties said it has sold 92% of Phase 1 and 10% of Phase 2, while projecting to complete the first 420 units of horizontal homes in 2018.
Total reservation sales from affordable horizontal housing amounted to P1.42 billion in 2017, according to the firm.
Century Properties has also ventured into leisure and tourism through Batulao Artscapes, a 142-hectare project launched in Batangas in December 2017. It's projected to feature a retirement village, hotel, museums, as well as sports and leisure facilities.
"It has been our top priority to drive growth through the diversification of our business. Our strategic decision to invest in allied real estate segments with potential high return opportunities has positioned us well for the coming years," Garcia said.
Since listing on the PSE in 2012, Century Properties has completed 18 residential condominium buildings with a gross floor area of close to 800,000 square meters.
The firm said it plans to complete another 4 buildings with a gross floor area of 135,000 square meters this year. – Rappler.com