CENTURY Properties Group Inc. (CPG) said its net income in the first quarter dropped by a third from the same period last year on slower real estate sales.
In a financial report to the Philippine Stock Exchange on Monday, CPG said its net income for the first three months fell 33.3 percent to P313 million from P469.3 million a year ago as real estate sales slowed.
It said gross revenues decreased by 36.53 percent to P1.95 billion from last year’s comparative P3.07 billion.
Revenue from real estate sales fell 44.5 percent to P1.45 billion from P2.62 billion in the previous year.
“The decrease in real estate sales is attributable to less revenue recognized in the first three months of 2016 for projects that [had been]turned over in the prior years,” CPG said.
The decline was also attributed to fewer project launches compared to the same period last year.
On the other hand, leasing revenue in the first quarter increased 6.36 percent to P75.3 million from last year’s P70.8 million, which the company attributed to “the leasing rate escalation for certain tenants of 5 percent.”
CPG also noted that the occupancy rate for its Century City Mall in Makati stood at 96 percent in the quarter in review.
During the three months, cost and expenses decreased 36.7 percent to P1.5 billion from last year’s comparative P2.4 billion, which was mainly driven by a 49.1 percent decrease in the cost of real estate sales to P775 million from last year’s P1.5 billion.