Century Properties Group Inc. reported a 16 percent drop in consolidated net income for the first half of 2021 to P457 million while consolidated revenues dipped 2 percent to P4.43 billion despite strong contributions from its affordable housing unit.
In a disclosure to the Philippine Stock Exchange, CPG said PHirst Park Homes, a joint venture with Mitsubishi Corporation, continues to defy uncertainties brought by the COVID-19 pandemic as it contributed P1.75 billion or 39 percent of the group’s consolidated revenues.
This is 89 percent higher than its P926 million contribution in the same period last year and was driven by a strong sales take-up from continued project launches, sustained collections, and on-target construction.
Contribution of in-city vertical projects to the group’s total revenues was down to 47 percent compared to 68 percent in the same period last year, while leasing business contributed 9 percent, up from last year’s 8 percent.
The lower recognized revenue was an expected outcome of the management’s phasing of capital expenditure deployment to cushion the pandemic’s impact.
“Our horizontal affordable housing business remains resilient as it continues to serve the robust demand for affordable housing through our various projects strategically located outside Metro Manila,” said Chief Finance Officer Ponciano S. Carreon, Jr.
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,” Carreon said.
He added that, “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.”
PHirst Park Homes just launched its eighth development in General Trias, Cavite in July, with two more projects to be rolled out in South Luzon and one project in North Luzon within the second half of this year.
The subsidiary posted reservation sales of P4.38 billion for the first half of 2021, 38 percent higher than P3.17 billion in the same period last year.
In terms of units, reservation sales reached 2,327 or 28 percent more than 1,819 units in the comparative period. Total collections for the first half of 2021 hit P2.02 billion, a 172 percent increase over P744 million in the same period last year.