Century Properties Group Inc. (CPG) grew its nine-month net income by 11.4 percent to P2.35 billion as wider operating margins and tax savings from its merger with PHirst Park Homes Inc. offset softer revenues.
Consolidated revenues slipped 2 percent to P12.03 billion from P12.31 billion a year earlier. But earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 2 percent to P4.06 billion, pushing the EBITDA margin to 34 percent from 32 percent.
PHirst, the group’s affordable horizontal housing business, remained its biggest growth engine, accounting for 75 percent of consolidated revenues after posting 7 percent growth.
The company said housing take-up remained steady despite economic and political uncertainty, buoyed by the country’s housing backlog and wider access to financing through Pag-IBIG.
“Our nine-month results reflect improved operating profitability, with higher EBITDA and stronger margins despite lower revenue,” said CPG president and chief operating officer Marco Antonio.
Another boost came from CPG’s merger with PHirst Park Homes, which the Securities and Exchange Commission approved in September, with CPG as the surviving corporation.
The consolidation allows CPG to recognize certain deferred tax assets linked to eligible net operating loss carry-overs, reducing its income-tax provision and supporting reported earnings.
“Recognizing the deferred tax assets supports reported net income, and the deductions can reduce current taxes and preserve cash, subject to applicable tax rules,” said chief financial officer and investor relations head Rodel V. Marqueses.
Beyond PHirst, Century Premium contributed about 15 percent of revenues, while commercial leasing and property management services accounted for 6 percent and 4 percent, respectively.
CPG had launched five projects as of October 31. Four PHirst developments in Quezon, Laguna, Batangas, and Bulacan cover 60 hectares and offer 5,575 housing units. Century Premium’s project in General Trias, Cavite, spans another 25 hectares, with 1,235 units.
The results underscore CPG’s reliance on affordable housing to sustain growth, while improved margins and tax savings help cushion the impact of softer overall revenues.
