MANILA, Philippines - Upscale realty firm Century Properties Group Inc. (CPG) said its net earnings grew more than four-fold to P453.5 million in the first quarter, driven by robust sales from its residential projects.
In a financial report submitted to securities regulators, CPG said total revenues more than doubled to P2.48 billion. Pre-sales amounted to P5.3 billion, equivalent to 812 units.
“There continues to be a strong demand for residential property in the Philippines. We have experienced this through our record growth in 2011 and this quarter, contrary to initial concerns about an oversupply of units,” said CPG chief financial officer Jose Carlos R. Antonio.
He added the company remains on track to meet its P20 billion pre-sales target for the year given low interest rates, a growing middle class, and continuous remittance inflows from Filipinos living overseas. CPG also expects net earnings to double this year from P866 million in 2011.
“Given that the real estate industry is benefiting from a continuous low interest regime, expanding population, tamed inflation rates, and a rise in the middle class where home buying remains to be a prime aspiration, Century has been able to achieve one of the highest growth rates in the real estate sector. It has transformed itself from a one-building developer to a destination mixed-used developer in multiple price points in the Metro Manila area,” Antonio said.
The company is currently developing Trump Tower and Milano Residences in Century City, a 3.4-hectare flagship development in Makati. Trump and Milano cater to the high-end segment of the market, and are now 68 percent and over 70 percent sold, respectively.
CPG has also expanded in the middle income market through Acqua Residences in Mandaluyong City, which has fully sold three out of its six buildings. It is currently pre-selling the fourth building, Livingstone Residences.
The company’s first project under its affordable line, Azure Urban Residences in Parañaque City, has fully sold five out of nine buildings.
CPG is also set to turn over units at Gramercy Residences in Century City by the end of the year. Construction of the Century City Mall is ongoing and is slated for completion next year.
In addition, the company is building a P4-billion mid-rise building along Commonwealth Ave. in Quezon City. It will offer a total of 2,000 affordable housing units.
Antonio said CPG’s existing landbank is sufficient for the next five years.
The company is also venturing into tourism-related development with its partnership with Group Developers Inc., Caylaway Development Corp. and Batulao Bio-loop Farms Inc. to convert a 142-hectare property in Batulao, Batangas into a major leisure and resort community.
As of end-March this year, CPG’s net cash position stood at P1.8 billion, having raised P2.3 billion from an equity offering in February.