The horizontal and affordable business unit of Philippine real estate company Century Properties Group (CPG), a joint venture with Mitsubishi Corp., continues to challenge uncertainties caused by the 2019 coronavirus disease (Covid-19) pandemic as it helps 1.75 billion pesos or 39% of the group’s consolidated turnover of 4.43 billion pesos for the first half of the year.
Consolidated revenue during the period was 89% higher than its contribution of 926 million pesos in the same period last year and was driven by a strong increase in sales through continued project launches , the collections supported and the construction in line with the objectives.
CPG’s consolidated revenue was 2 percent lower year-on-year while net profit for the period was 457 million pesos, 16 percent lower from the same period last year. The contribution of vertical projects in cities to the group’s total turnover fell to 47% from 68% in the same period last year, while rental activities contributed 9%, from 8% for the year last. The decline in recognized revenues was an expected result of management’s gradual deployment of capital spending to cushion the impact of the pandemic.
“Our horizontal affordable housing business remains resilient as it continues to meet the strong demand for affordable housing through our various projects strategically located outside of Metro Manila. However, the impact of restrictions and uncertainties still weighs on the group’s vertical city projects as sales, collections and construction activities continue to be slower than expected, ”said CFO Ponciano Carreon Jr. .
He pointed out that the slowdown in the leasing market has limited the group’s ability to realize the full potential of the portfolio so far.
PHirst Park Homes, CPG’s premier home-buying brand, just launched its eighth development at General Trias, Cavite in July, with two more projects to roll out in southern Luzon and one in northern Luzon during the second half of this year.
PHirst Park Homes recorded reservation sales of 4.38 billion pesos for the first half of 2021, up 38% from 3.17 billion pesos in the same period last year. In terms of units, reservation sales reached 2,327 or 28% more than 1,819 units during the comparative period. Total collections for the first half of 2021 reached 2.02 billion pesos, an increase of 172% from 744 million pesos in the same period last year.