Affordable housing unit lifts net income of CPG in 2023
Century Properties Group Inc. (CPG) said its net income last year jumped to a 10-year high and surpassed the level recorded prior to the pandemic mainly due to the strong performance of its affordable housing brand.
The company said its profit in 2023 surged 32 percent to P1.86 billion, from the previous year’s P1.4 billion.
Revenues grew by 14 percent to P12.7 billion from the previous year’s P11.12 billion, driven by the contribution of CPG’S first-home residential development Phirst Park Homes which amounted to P7.4 billion or 58 percent of total revenues.
The company’s vertical developments and commercial leasing segments contributed 27 percent or P3.49 billion and 11 percent or P1.35 billion, respectively.
The remainder came from its property management segment which contributed 4 percent or P463 million.
“We are very satisfied with the 2023 performance of the company as we have proven that the deliberate and prudent measures taken by the management to navigate through the challenges during the crisis period and the strategies we implemented are now materializing,” Ponciano S. Carreo Jr., the company’s CFO, said.
“We continue to serve the high demand for affordable, quality, and strategically located first homes and focus on the continued recovery of other real estate business segments.”
The company redeemed its P3billion preferred shares on July 10, 2023, and its P3-billion fixed-rate retail bonds on March 1.
“For our in-city vertical developments, we look forward to unveiling our upcoming projects tailored to meet the evolving needs of various market segments, including a premium low-density boutique residence in Makati City, a mid-rise residential building in Quezon City, as well as a mid-rise residential development within Azure North estate in San Fernando, Pampanga,” Marco R. Antonio, the company’s president and CEO, said.
“Under our Phirst Brand, we will be launching five new projects in 2024 covering 85 hectares, with over 8,000 units worth P18 billion of fresh inventory. Three of these developments will be in Calabarzon, while the other two will be in Central Luzon. We are also taking proactive strategies to sustain and enhance our financial performance in the coming months.”
The company announced last year the full acquisition of Phirst, its first-home residential venture, five years after CPG entered into a joint venture with Mitsubishi Corp.
In May 2023, CPG’S board of directors approved the company’s acquisition of a substantial 40-percent ownership stake previously held by Mitsubishi in two entities, Phirst Park Homes and Tanza Properties Inc. via a share purchase agreement.