As the government gradually contains the COVID-19 contagion in most major cities, the domestic real estate space is showing signs of a steady rebound and is expected to maintain the trend in the second half.
Century Properties Group, Inc. reported P5.3 billion earnings for the first half of 2022, or 20 percent higher than the P4.4 billion revenue in the same period last year.
In a statement, the Jose E.B. Antonio-led company said its affordable housing unit, PHirst Park Homes Inc. (PPHI), a joint venture with Japanese firm Mitsubishi Corporation, contributed P2.6 billion or 48 percent to its total revenues.
On the other hand, its leasing segment’s revenue remained stable, amounting to P521 million.
“We are steadfast in our commitment to being a part of nation building by serving the needs of Filipinos for quality, affordable, and strategically located homes. We will further ramp up this business segment as we help fill the high demand due to the big unserved backlog of this market segment,” said CPG chief finance officer Ponciano Carreon, Jr.
The CPG launched PHirst Park Homes Naic in Cavite in March 2022 and PHirst Park Homes Balanga in Bataan in April 2022.
Two additional PPHI projects in Central Luzon will be launched within the year. With 12 affordable housing projects already established, the company is fast approaching its target of launching 15 projects by 2023.
The report noted that as of June 2022, PPHI has already completed 4,584 affordable houses, 3,126 of which have already been turned over.
Moreover, the CPG said that its net income for the first six months of the year was P549 million, 20 percent higher than P457 million in the same period last year.
On the other hand, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 33 percent to P1.2 billion from P877 million in the same period last year.
CPG’s total assets as of the end of June amounted to P54.4 billion, with total liabilities of P31.5 billion and total equity of P22.9 billion, while its total debt was lower, mainly due to the redemption of its P3 billion 3-year bonds due April 15, 2022, which has a coupon rate of 7.8203 percent per annum.
With the decrease in total debt and an increase in EBITDA, the Company posted a Debt to EBITDA of 7.5x, a significant improvement from 10x. The Company’s cost of borrowing also decreased from 5.6 percent in June 2021 to 5.3 percent in June 2022.