LISTED property developer Century Properties Inc. (CPGI) said on Monday it is programming capital expenditure of P6 billion for this year to expand its condominium projects and leasing assets even as its profit dropped last year because of fewer projects launched.
In a disclosure to the Philippine Stock Exchange (PSE), CPGI said its total revenues dropped to P7.38 billion last year from P10.38 billion recorded in 2015 while real estate sales amounted to P4.97 billion from P7.75 billion in the previous year.
Net income for 2016 was at P726.93 million, about half the P1.53 billion profit that was reported for the previous year.
“For 2017, we plan to spend around P5 billion in our condominium projects and an additional P1 billion in leasing assets. We are also looking to start deploying capital for our affordable and tourism business later this year,” CPGI’s Investor Relations Group head Kristina Garcia said.
“Our focus—on turning over and completing our high-rise projects in Century City Makati, Azure Urban Resort Residences in Parañaque, Acqua Private Residences in Mandaluyong and the Residences at Commonwealth, Quezon City—is paying dividends, as evidenced by our cash balance of P3.34 billion as of year-end 2016. We turned cash flow positive from operations in 2016, and we envision this trend to continue in 2017. This places us in a stronger position to pursue diversification strategies,” she added.
CPGI said it remains optimistic about the prospects of the real estate industry and the general economy.
“While it continues to do in-city developments, it will likewise expand outside Metro Manila for affordable housing and leisure and tourism projects. The former is the company’s response to the country’s backlog of housing units, conservatively estimated at 3.5 million. The latter is to cater to the increasing number of foreign tourists and retirees into the country, as well as local tourists given rising disposable incomes,” the company added.
On April 1, CPGI launched its PHirst Park Homes project, in partnership with one of Japan’s largest conglomerates, Mitsubishi Corp. It is the company’s first affordable housing category that will cater to first-time homebuyers.
It is also set to unveil a series of housing communities in the second quarter of 2017 with a 26-hectare community in Tanza, Cavite and is scheduled to launch its first major leisure and tourism project in the latter part of 2017.
From 33 launched buildings with gross floor area totaling 1.43 million square meters, CPG has already completed 16 buildings with a gross floor area of 792,000 square meters as of year-end 2016.
Incorporated in 1975, CPG is involved in the high-end real estate business through its subsidiaries Century City Development Corp., Century Limitless Corp., Century Communities Corp. and Century Properties Management, among others.