MANILA, Philippines - As its residential properties continued to sell like hotcakes, real estate developer Century Properties saw its net income surge 310% to P453.5 million for the first three months of 2012 versus P110.5 million during the same period last year.
Total revenues jumped 121% to P2.48 billion in the January to March period from P1.12 billion in the same period in 2011.
In a statement, Century Properties Group Inc. chief financial officer Jose Carlo R. Antonio attributed the company's performance to the strong demand for residential property in the country.
"We have experienced this through our record growth in 2011 and this quarter, contrary to initial concerns about an oversupply of units. After booking P18.4 billion of pre-sales in 2011, Century’s pre-sales for first quarter of 2012 was P5.3 billion consisting of 812 units, allowing Century to remain on track for its P20 billion pre-sales target for full year 2012," he said.
The company's luxury projects Trump Tower Manila and Milano Residences are now 68% and 70% sold, respectively. Its projects Acqua Residences in Mandaluyong City and Azure Urban Residences in Paranaque, which are aimed at the middle-income market, are also doing well.
"Given that the real estate industry is benefiting from a continuous low interest regime, expanding population, tamed inflation rates, and a rise in the middle class where home buying remains to be a prime aspiration, Century has been able to achieve one of the highest growth rates in the real estate sector. It has transformed itself from a one building developer to a destination mixed used developer in multiple price points in the Metro Manila area," Antonio said.
In June, Century will be launching a P4 billion project in Commonwealth Avenue in Quezon City.
Antonio said Century currently has a land bank portfolio for the next 5 years, which would be enough to ensure continued growth for the company.
As of March 31, 2012, Century’s total debt is P1.3 billion, representing a total debt-to-equity of 18.9%. On a net debt to equity basis, Century is in a net cash position as it reported P1.8 billion of cash as of March 31, 2012 after raising P2.3 billion in proceeds from an equity offering last February.