Century Properties income dips 1.9% to P1.8B

MANILA, Philippines - Century Properties Group Inc. said its profits slightly declined last year as income taxes offset its record-high sales.

In a disclosure to the stock exchange, the property firm said its net income after tax contracted 1.9 percent to P1.8 billion due to an increase in income taxes.

Consolidated revenues hit a record P10.8 billion, up 12.5 percent from P9.6 billion in 2012. Gross profit from real estate development rose six percent to P4.2 billion from P4 billion a year ago.

Century Properties attributed the revenue growth to “strong sales and healthy collection levels across all its residential segments.”

Last year, the company pre-sold P24.6 billion worth of properties, ahead of its P24-billion target as its launched more than 3,400 units last year valued close to P20 billion.

Century Properties said it sustained the sales growth by offering differentiated real estate products through brand collaborations and unique amenities.

It has collaborations with world-renowned brands like Trump, Versace Home, Armani/Casa, MissoniHome, GE Healthcare, Forbes Media and yoo inspired by Starck.

“We have partnered with these brands because we believe that brands convey quality, credibility, and experience. The strength in our pre-sales is proof of the success of our concept,” said Kristina Garcia, investor relations director of Century Properties.

For instance, the company collaborated with international style icon Paris Hilton to design the Paris Beach Club at the Azure Urban Resort Residences.

To date, Century has launched its final building in Azure Residences. Of the nine buildings with an inventory of around 5,000 units, 86 percent have already been pre-sold, the company said.

Aside from its residential developments, Century Properties is also increasing its recurring income portfolio. It has opened Century City Mall, marking the firm’s foray into the recurring income space.

The mall has a net leasable area of 17,000 square meters (sqm) and is expected to generate roughly P100 million in earnings before interest, taxes, and depreciation within a full year of operation.

By 2018, Century Properties expects to complete five more properties for recurring income: Centuria Medical Makati, Forbes Media Tower and Century Spire, an office building in Bonifacio Global City, and Acqua 6.

“The company expects roughly 110,000 sqm of gross floor area from the said projects,” Century Properties said.

“Similar to how we deliver quality residential projects, we plan to deliver the same level of quality for our office and retail developments,” Garcia said.

With 28 years in the business of real estate development, marketing and property management, Century Properties has completed more than 20 condominium buildings, transforming 744,576 sqm of space into premier residential and office developments in and outside Metro Manila.