CPG’s affordable housing chips in P2.6B

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Century Properties Group Inc. (CPG) reported its consolidated revenues for the first half of 2022 reached P5.3 billion, up by 20 percent 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 Corp., contributed P2.6 billion or 48 percent 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 Ponciano Carreon Jr., CPG chief finance officer.

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The company launched PHirst Park Homes Naic in Cavite in March and PHirst Park Homes Balanga, in Bataan in April .

Two more PPHI projects in Central Luzon will be launched within the year.

With 12 affordable housing projects launched, the is fast approaching its target of launching a total of 15 projects by 2023.

As of June 2022, the company has completed 4,584 affordable houses, 3,126 of which have been turned over.

CPG’s net income for the first six months of the year was at P549 million, 20 percent higher than P457 million in the same period last year. 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 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 P3 billion three-year bonds due April 15, 2022, which has a coupon rate of 7.8203 percent 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.

Last February 24, CPG issued its P3- billion five-year bonds carrying an interest rate of 5.7524 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 borrowings also decreased from 5.6 percent in June 2021 to 5.3 percent in June 2022.

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