Century Properties expects P3-B profit in 2015

MANILA, Philippines - Listed Century Properties Group Inc. will continue riding on the property boom as it aims to double its profits and substantially jack up its pre-sales in the medium term, a top company official said.

Net income is seen hitting P3 billion while pre-sales are expected to reach P30 billion by 2015, said Century Properties chairman Jose E. B. Antonio.

The property firm is banking on existing inventory, unlaunched projects and leasing portfolio to reach new records under its 2013-2015 growth plan.

“We will be assisted in attaining this goal by our unbooked revenues as well as project completions,” Antonio said.

“Other sources of net income are the unlaunched buildings of our existing masterplans as well as the opening of our landbank,” he added.

By 2017, Century Properties will have 23 new buildings with more than 850,000 square meters of floor area, of which 48 percent will be completed in 2015.

The listed firm is coming from a banner year as its profits more than doubled to P1.86 billion in 2012 from P866 million a year ago.

Pre-sales rose 16.6 percent to P21.4 billion, of which 74 percent came from the international market.

The company said the luxury, middle income, and affordable housing sector accounted for 24 percent, 33 percent and 43 percent pre-sales, respectively.

“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,” Antonio said.

Century Properties already sold 92 percent of the 13,370 units it opened for sale. It is set to complete six buildings with 375,093 square meters of floor area by end-December.

Meanwhile, the listed property firm is increasing its recurring income through offices, hotels, medical center and a shopping mall.

Century Properties allotted 100,000 square meters of floor area for commercial properties.

Jose Carlo Antonio, Century Properties chief financial officer and managing director said by 2015, 10-20 percent of income would come from the leasing business.

The company will start commercial operations of the five-story Century City Mall in Makati late this year while the construction of the 28-story Centuria Medical Makati will be completed in 2014.

Century Properties is looking at the development of hotels in tourist areas like in Bicol province. It will partner with international brands for the management of three-, four- and five-star hotels.

The Department of Tourism aims to attract 10 million foreign tourists by 2016.

Last month, the real estate firm raised P1.64 billion from an equity offering to foreign investors that will support its landbank expansion in Metro Manila and secondary cities.

“We will continue to be a major contributor of projects here in Metro Manila considering this is where the demand generally comes from,” Antonio said.

To date, Century Properties has five key projects totaling 31 buildings and 955 single detached homes.

With 27 years in the business of real estate development, marketing and property management, Century Properties has completed 21 condominium buildings (5,560 units) with a total gross floor area of 669,857 square meters and is managing 50 properties as of end-2012.