CENTURY Properties Group, Inc. (CPG) posted P457 million in net income in the first half, or 16% lower than the same period last year as lockdown restrictions weighed down urban vertical market sales.
The group said its consolidated revenues slipped 2% to P4.43 billion year on year but did not release quarterly data. The contribution of in-city vertical projects to total revenues fell to 47% from 68% in the same period last year, while the leasing business contribution went up to 9% from 8%.
“The lower recognized revenue was an expected outcome of the management’s phasing of capital expenditure deployment to cushion the pandemic’s impact,” the listed property developer said in a press release on Thursday.
In contrast, its affordable housing unit — a joint venture with Mitsubishi Corp. — posted P1.75 billion in revenue, or 89% higher than last year. CPG said sales take-up from continued project launches, sustained collections, and on-target construction helped the segment contribute 39% of the group’s consolidated revenues.
Horizontal affordable housing remained resilient as it served demand in areas outside Metro Manila, CPG Chief Finance Officer Ponciano S. Carreon, Jr. said.
“However, the impact of restrictions and uncertainties are still weighing down the group’s in-city vertical projects as sales, collections and construction activities continue to be slower than the desired velocity. Likewise, the softening of the leasing market has limited the group’s ability to fully realize the portfolio’s potential for now.”
CPG’s first homebuyer brand PHirst Park Homes launched its eight developments in General Trias, Cavite last month, while three more projects will be rolled out in Luzon this year.
PHirst Park Homes reservation sales in the first half went up 38% to P4.38 billion. Total collections went up 172% to P2.02 billion.
“We will continue with our strategy of keeping a healthy level of liquidity and strong balance sheet, and biased investment allocation in favor of resilient and market driven products,” Mr. Carreon added.
CPG shares went up 1.15% to 44 centavos apiece on Thursday. — Jenina P. Ibanez