Housing sales boosts Century Properties’ earnings

Strong housing sales boosted the net income of Century Properties Group (CPG), the real estate firm founded and headed by Amb. Jose E.B. Antonio, by 20 percent to P656 million in the first half of 2023 from P548 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues for the first semester of 2023 rose 27 percent to P6.7 billion from the P5.3 billion generated in the same period of 2022.

“The revenue growth for the first half of 2023 was driven by the strong contribution of CPG’s First-Home Residential Brand (PHirst) amounting to P3.5 billion or 52 percent of CPG’s consolidated revenues, an expansion from its 48 percent share amounting to P2.6 billion in the first half of 2022,” CPG said.

It added that the remainder of the revenues for the first half of 2023 came from In-City Vertical Developments, Commercial Leasing and Property Management segments which contributed P2.4 billion, P670 million and P217 million, respectively.

“The demand for quality and strategically located first homes have proven to be resilient and even stronger and CPG was well-prepared to serve this market with its First-Home Brand. We are aiming to maintain this growth trajectory as we launch new projects,” said CPG President and CEO Marco R. Antonio.  

In 2022, PHirst broadened its offerings as it entered new market segments under new product brands: PHirst Sights Bay for socialized and economic segments, PHirst Editions Batulao catering to the mid-income market, and PHirst Centrale Hermosa—a mixed-use township encompassing residential (Impressions), commercial (Fairgrounds), and retail (Boroughs) establishments. 

This expansion significantly widened PHirst’s price point offerings, ranging from P580,000 to P8 million, and thus effectively tackling the complete spectrum of the country’s housing backlog.

PHirst continues to grow its core affordable product line ranging from P1.5 to P3.5 million. In the first quarter of 2023, PHirst unveiled its maiden development in the province of Nueva Ecija via PHirst Park Homes Gapan. 

This was followed in the second quarter by the opening of PHirst Impressions Batulao in Nasugbu, Batangas. Plans are in place to add two additional projects in the second half of 2023, which includes PHirst’s pilot venture in the Visayas Region.

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Collectively, these will bring PHirst’s portfolio to 20 active projects, on its way to achieving the programmed nationwide presence.

“We are taking a very calculated stance in managing our leasing portfolio and high-rise vertical residential developments aligned with our view of a moderate and gradual growth for this segment of the industry,” noted Antonio.

CPG’s total EBITDA also notably increased by 26 percent to P1.5 billion in the first half of 2023 from P1.2 billion in the first half of 2022. 

This can be attributed mainly to high-margin projects and improved operating efficiencies. The gross profit margin for the first half of 2023 remained healthy at 43 percent, also higher than 41 percent in the same period last year.

“Our financial and operating results for the first half of the year are comparable if not better than the pre-pandemic levels which puts us in a very good position to pursue opportunities in this growing and robust segment of the industry through organic growth, acquisitions or consolidation,” said CPG Treasurer and Chief Finance Officer Ponciano S. Carreon, Jr.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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