Affordable housing business contributes P2.6Bn
Century Properties Group, Inc. (PSE:CPG) reported its consolidated revenues for the first half of 2022 at P5.3 billion, up by 20% from P4.4 billion in the same period last year.
PHirst Park Homes, Inc. (PPHI), CPG’s affordable housing unit under a joint venture with Mitsubishi Corporation, contributed P2.6 billion or 48% to total revenues. Its leasing segment’s contribution to revenues remained stable, amounting to P521 million.
“We are steadfast in our commitment of 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 S. Carreon, Jr. The Company launched PHirst Park Homes Naic in Cavite in March 2022 and PHirst Park Homes Balanga, in Bataan in April 2022.
Two more additional PPHI projects in Central Luzon will be launched within the year. With 12 affordable housing projects already launched, the Company is fast approaching its target of launching a total of 15 projects by 2023. As of June 2022, the Company has already completed 4,584 affordable houses, 3,126 of which have already been turned over. CPG’s net income for the first six months of the year was at P549 million, 20% higher than P457 million in the same period last year.
Likewise, the Company’s EBITDA jumped 33% to P1.2 billion from P877 million in the same period last year. CPG’s total assets as of end June 2022 amounted to P54.4 billion, with total liabilities of P31.5 billion and total equity of P22.9 billion.
The Company’s total debt was lower, mainly due to the redemption of its P3billion 3-year Bonds due April 15, 2022, which has a coupon rate of 7.8203% per annum. The payment for the bond maturity came from the net proceeds of CPG’s bond offer in February this year and internally generated cash.
On February 24, 2022, CPG issued its P3 billion 5-year Bonds carrying an interest rate of 5.7524% 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 borrowings also decreased from 5.6% in June 2021 to 5.3% in June 2022.
Read More: Press Release Philippines