Century Properties Group Inc. said it will spend between P8 billion and P10 billion in capital expenditures this year to fund residential and office development projects, as well as land acquisitions.
CPG said funding for this year’s capital expenditures will be financed equally from internal and external sources, including the planned P3-billion retail bond offering scheduled next month.
CPG reported that net income in 2018 2018 jumped 72 percent to P1.1 billion from P650 million recored in 2017.
Revenues surged 60 percent to P10.7 billion from P6.7 billion in 2017, driven by the completion of three residential buildings, an office tower and 259 affordable housing units.
“Our very positive results in 2018 are strong indications that our diversification strategy is starting to bear fruit and we are headed to the right direction. Century Properties Group’s expansion into affordable housing and commercial leasing have started to be profitable and we expect this upward trend to continue,” said CPG chief finance officer and head of investor relations Ponciano Carreon, Jr.
“These two businesses will contribute a bigger share of the company’s revenue and income in the coming years, sustaining CPG’s growth momentum,” Carreon said.
Carreon expects horizontal housing projects in the next three years to contribute up to 40 percent of the company’s revenues from the current 10 percent.
CPG’s affordable housing business under the brand PHirst Park Homes, in partnership with Mitsubishi Corp., this year plans to launch 33,000 units with a sales value of P57 billion within the next four to five years.
To date, it has rolled out communities in Tanza, Cavite; Lipa, Batangas; and San Pablo, Laguna, with three more sites targeted for launch this year.
CPG plans to expand its leasable space from the current 133,000 square meter to 300,000 sq m by 2020 with a target of P1.5 billion in revenues.
From being concentrated in high-rise residential properties, CPG undertook a business expansion program to diversify into allied areas of real estate.
The diversification plan started five years ago to serve unmet market demands and increasing revenue streams.