More property firms report profit growth

MANILA, Philippines — Century Properties Group Inc. and Filinvest Land grew their earnings in the first half.

CPG posted a net income of P490 million, 10 percent higher than the previous year, driven by contributions from its in-city vertical developments and increased investments in allied real estate sectors.

Total revenues increased 40 percent to P4.7 billion, a positive indication of the significant strides it has achieved in its diversification plans.

 “CPG’s net income already covers 78 percent of the full year net income it recorded in 2017. We see this positive trend in our bottom line to continue. While we continue to recognize the revenue from the unit inventory of our condominium developments, we are also seeing a higher income stream from our new allied real estate segments,” said Ponciano Carreon Jr., CPG’s newly appointed CFO and head for investor relations.

In the next five years, CPG expects to earmark P30 billion for capital expenditures or P6 billion a year, which will be sourced from internal and external funds.

Half of this will be allotted for the completion of its existing developments, while the other half will support the company’s business expansion initiatives.

“As the company’s diversification program starts to bear fruit, we will continue to work towards improving operational efficiencies to maximize growth opportunities and deliver more value to our shareholders in the near future,” Carreon said.

FLI, meanwhile, grew its net income by nine percent to P2.88 billion as revenues went up six percent to P10.65 billion.

Rental revenues grew 28 percent to P2.6 billion, buoyed by increased revenues from new office and retail buildings.

For the residential business, FLI will launch P16 billion worth of projects nationwide, which are expected to boost revenues.

“We are looking forward to the company’s further growth as we complete our investment property expansion plan. We expect profitability to increase as our newly opened office buildings and shopping malls stabilize and additional office buildings become operational within the year,” said FLI chief executive officer and president Josephine Gotianun Yap.