Posted on July 23, 2014 11:13:33 PM [ BusinessWorld Online ]
LUXURY CONDOMINIUM developer Century Properties Group, Inc. is moving to expand its commercial leasing business further to ensure a “more stable and predictable” revenue stream in the coming years.
The company currently has six commercial projects with a total of more than 150,000 square meters (sq.m.) of leasable space that may generate up to P1 billion worth of revenue upon completion in 2019.
On the sidelines of the company’s annual shareholders’ meeting on Wednesday at the Century City Mall in Makati City, Century Properties Chief Financial Officer Jose Carlo R. Antonio said the company is targeting a 15% to 20% contribution from recurring income by 2019.
At present, recurring income accounts for only 2% to 3% of the company’s earnings before interest, taxes, depreciation and amortization, he said.
The newly opened P1.4-billion Century City Mall -- which marked the company’s foray into the retail business last March -- is expected to bring in P100 million in income annually starting next year.
By the end of the year, the company will turn over its health care building -- the 28-storey Centuria Medical Makati in its master-planned development called Century City.
Other recurring income streams in the pipeline are the luxury tower Century Spire in Makati City, Forbes Media Tower, Asian Century Center in Bonifacio Global City, and the soon-to-be-launched Tower 6 of the Acqua Private Residences in Mandaluyong City.
Century Spire will house a combination of residential and office units, while the Forbes Media Tower and Asian Century Center -- located in Makati City and Bonifacio Global City, respectively -- are both office towers exclusively and are expected to benefit from the continuous growth of the business process outsourcing sector.
The Forbes Media Tower is a partnership with the Forbes Media Group, publisher of Forbes magazine, while Asian Century Center is a joint venture with Asian Carmakers Corp. It will house the largest showroom of upscale car brand BMW, as well as Asian Carmakers’ headquarters.
“The company is now evolving from being a top residential developer in Metro Manila to a leading well-diversified real estate developer with significant recurring and predictable revenue streams,” Century Properties Chairman Jose E.B. Antonio said.
In the past 28 years, Century Properties completed 25 condominiums with a total of 873,127 sq.m. and 8,777 units.
The company’s first-quarter net income rose 2% year on year to P513.062 million.
Consolidated revenue rose 10% to P2.85 billion, while revenue from real estate sales rose 8% to P2.39 billion.
Century Properties shares on Wednesday fell one centavo or 0.76% to close at P1.31. -- Daphne J. Magturo