Century Properties Group Inc. reported a 29 percent drop in net income to P205 million for the first quarter of 2021 from P290 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said earnings were supported by the continued strong performance of its horizontal affordable housing business.

The company posted consolidated revenues of P2.1 billion, down by 26 percent from P2.8 billion last year due to the impact of government restrictions in view of the persisting coronavirus health crisis.

The multiple lockdowns caused a slowdown in sales, collections and construction activities for the company’s in-city vertical projects.

“CPG was quick to institute measures to cushion the negative impact by prioritizing business efforts and funding areas that will drive resiliency and benefit the group overall,” said CPG Chief Finance Officer Ponciano S. Carreon, Jr.

The company’s affordable housing business through PHirst Park Homes, a joint venture with Mitsubishi Corporation, contributed P156 million or 76 percent of CPG's total profit in the first quarter.

This current segment profit is 68 percent higher than its P93 million contribution in the same period last year.

With the sustained higher contribution of its affordable housing business, CPG’s gross profit margin improved to 44 percent in the first quarter of 2021 from 40 percent in the comparative period.

“The management is very satisfied with the performance of its affordable housing business. It is precisely at these challenging times that we expect our diversification efforts in the prior years to help the company remain resilient,” said Carreon.

He added that, “Our expansion to affordable housing business is delivering the results now, which was also supported by the good performance of leasing.”

CPG’s office leasing business contributed 30 percent of profit in the first quarter of 2021 compared to 27 percent from the same period last year.

As the CPG management team continues to underwrite the business within the context of prolonged uncertainties due to the pandemic, it persists in making its operations efficient.

In the first quarter it brought down operating expenses by Php165 million or 22 percent lower from the same period last year.

Its focus remains on keeping a healthy balance sheet, increasing liquidity and comprehensive debt management.

Debt to equity and net debt to equity ratios were maintained to single digits while current ratios improved with reduced debt.

CPG said it is taking advantage of the slowdown to prepare for new businesses that will continue to offer diversified products, towards what the management perceives to be strong and resilient sectors.

For its affordable housing business, the company will launch four new house and lot communities in northern and southern Luzon in the second half of 2021.