Century Properties profit up 2.5%

MANILA, Philippines - Upscale real estate developer Century Properties Group Inc. reported a slight improvement in its first quarter profits on the back of higher sales in existing residential projects.

In a regulatory filing, Century Properties said its net income inched up 2.49 percent to P513.06 million from P500.55 million a year ago.

Consolidated revenues rose by a tenth to P2.85 billion from P2.6 billion as revenues from real estate sales climbed eight percent to P2.39 billion from P2.21 billion last year.

“Such growth is attributable to a continued increase in project sales, as well as healthy collection statistics across all its residential segments,” Century Properties said.

Collections were derived from the completion of Knightsbridge Residences and turnover of its Rio, Santorini, St. Tropez towers at the Azure Residences.

Its property management arm, Century Properties Management Inc. (CPMI), said its revenues jumped 11 percent to P71.7 million from P64.5 million a year ago.

CMPI claims to be the largest independent property manager in the country today, with 49 buildings totaling 2.6 million square meters (sqm) under management, including the Asian Development Bank, Makati Medical Center and Pacific Star Building.

However, costs and expenses rose 12 percent to P2.11 billion from P1.88 billion due to the increased cost of real estate sales.

In the first quarter, pre-sales hit P5.3 billion, of which 69 percent were affordable projects or units priced below P3.6 million; 22 percent were middle income projects or units priced between P3.7-7.2 million; and nine percent were luxury projects or units priced above P7.3 million.

“Given the general economic sentiment and outlook and continued strong demand for residential projects, not just from Century Properties, but from other property developers as well, we remain positive about prospects for the industry,” said Kristina Garcia, director for investor relations of Century Properties.

 â€œWe believe that the steps we have taken to differentiate our projects are beginning to pay off. We have seen strong demand, especially from overseas Filipinos for projects in all the segments we are in,” she said.

Aside from the 60-story luxury residential tower Century Spire, the company will launch a sixth tower at its Acqua project, as well as a residential tower at its Pampanga site called Azure North.