18
Annual Stockholders’ Meeting June 28, 2019

Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

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Page 1: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

Annual Stockholders’ MeetingJune 28, 2019

Page 2: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

Began operations

Completion of Gramercy, Knightsbridge, Rio and Santorini n Azure

Completed issuance of stock dividend with stock dividend rate of 20.66%

Opened Century City Mall

Completed maiden offering of PHP 2.7 B Unsecured Fixed Rate Retail Bond

Completion of St. Tropez in Azure

CPGI signed JVA with Mitsubishi Corp. to foray into affordable housing

Completion of Milano, Dettifossand Livingstone in Acqua, and Maui in Azure

CPGI and Mitsubishi Corp launch PhirstPark Hiomes

Completion of Asian Century Center in BGC, Boracay in Azure, OsmeñaEast in Commonwealth, and Iguazu in Acqua

Launched BatulaoArtscapes

Completion of Trump Tower, Roxas East and Quezon North in Commonwealth, and Maldives in Azure

Signed JVA with Mitsubishi Corp. to build Century Diamond Tower

Launched Novotel Suites Manila at Acqua

Completion of Centuria, Niagara and Sutherland in Acqua, and Miami, Positano in Azure and Osmeña West in Commonwealth

Note:(1) Century Properties Management Inc.

(2) East Asia Power Resources Corporation

Completion of Essensa East Forbes

Launched its first large-scale house and lot development

Expanded into large-scale mixed-use developments with Century City

Entered affordable to middle-income segment

CPMI1, the country's first independent real estate property management company, was established

Began development of upscale condominiums

PHP 2.3 B re-IPOselling 1.33 billion shares, increasing free float to 27%

Raised PHP 1.6 B from 800 million shares issued, increasing free float to 33.2%

1986

1989 - 2004

2006 – 2011

2012 – 2013

2018

Completed “backdoor listing” with EAPRC2

2014

2015

20162017

KEY MILESTONES AND DEVELOPMENTS

As of 2018, CPG has completed:

26 out of 37 projects

14,208 out of 23,186 total units

1,303,398 sqm out of 1,788,799 sqm of total

GFA

Issued PHP 1.6 B convertible bond to Dutch pension fund APG 24

Page 3: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

3

PHILIPPINE MACROECONOMY

3.00 3.00 3.003.00 3.00 3.003.00 3.00 3.00 3.003.19

3.333.50

4.00

4.50 4.50

4.754.75

2.500

3.000

3.500

4.000

4.500

5.000

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

May-…

Jun

-17

Jul-

17

Au

g-17

Sep

-17

Oct

-17

No

v-1

7

De

c-17

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

May-…

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

No

v-1

8

De

c-18

BSP Overnight Borrowing Rate (%)

49.750.0

50.3

49.9

49.9

49.9

50.650.9

51.051.3

51.0

50.4

50.5

51.8

52.1 52.1 52.2

53.053.4

53.3

53.9 54.0

52.8

52.8

49

50

51

52

53

54

55

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

y-17

Jun

-17

Jul-

17

Au

g-17

Sep

-17

Oct

-17

No

v-1

7

De

c-17

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

No

v-1

8

De

c-18

Exchage Rate (PHP/USD)

2.5

3.13.13.22.9

2.52.42.6

3.03.13.02.9

3.4

3.8

4.34.54.6

5.2

5.7

6.46.76.7

6.0

5.1

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Jan

-17

Feb

-17

Ma

r-1

7

Ap

r-1

7

Ma

y-17

Jun

-17

Jul-

17

Au

g-17

Sep

-17

Oct

-17

No

v-1

7

De

c-17

Jan

-18

Feb

-18

Ma

r-1

8

Ap

r-1

8

Ma

y-18

Jun

-18

Jul-

18

Au

g-18

Sep

-18

Oct

-18

No

v-1

8

De

c-18

Inflation Rate (%)

4.4

2.9

3.6

5.0

6.7

4.85.2

6.6

4.2

1.1

7.6

3.7

6.77.1

6.1 6.1

6.96.7

6.2

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

GDP Growth Rate (%)

Page 4: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

4

GROWTH STRATEGY SUPPORTED BY FAVOURABLE MACROECONOMIC ENV’T

UNMET HOUSING NEED AND DEMAND HOUSING BACKLOG BY REGION

CPG’s entry into the affordable housing segment capitalizes on the country’s demand for affordablehousing, which has an estimated backlog of roughly 6.6 million units.

TARGETING HIGH INCOME & HIGH GROWTH

AREAS

535,

546

136,

729

383,

760

314,

163 49

2,30

6

555,

185

251,

041

372,

015

447,

358

435,

939

255,

437

270,

019

278,

906

388,

386

305,

583

219,

221

239,

037

NCR

CAR I II III

IV A

IV B V VI VI

I

VIII IX X XII

XIII

CARA

GA

ARM

M

Housing Backlog by Region

Soc Eco Low Total

Sources: SHDA, HUDCC

Segment

Unmet

Housing

Need,

2001-2015

Estimated

Housing

Demand,

2016-2030

Estimated

Housing

Need by

2030

Can't

Afford 786,984 1,134,986 1,921,970

Socialized 1,275,921 1,369,181 2,645,102

Economic 3,686,429 2,509,718 6,196,147

Low Cost 918,820 611,815 1,530,095

Mid Cost 78,705 78,705

High End 11,767 11,767

Need 6,667,614 5,716,172 12,383,786

Page 5: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

Platforms

Products

PRODUCT OFFERINGS

In-City Vertical

Developments

Horizontal

Affordable

Housing

Leisure and

Tourism

Investment

Properties

Mixed-use

development

consisting of

condominium

and

residential

projects

Affordable

high quality

horizontal

projects

Retail mall,

office

buildings,

medical

facilities

Property

management

Exclusive,

specialty

management

and leasing

service

Property

Management

Art park

with

designer

homes and

vacation

amenities

Century Properties Group, Inc. (“CPG”)

5

CPG’s portfolio of product offerings has expanded to other market segments allowing the Companyto diversify its revenue base. This strategic move is now yielding very positive results and we expectto sustain this growth momentum in the coming years

Page 6: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

6

VERTICAL DEVELOPMENTS

BUSINESS HIGHLIGHTS

VERTICAL DEVELOPMENTS PORTFOLIO

Century City

• Gramercy

Residences

• Milano Tower

• Trump Tower

• Knightsbridge

Residences

Azure Urban

Residences

• Santorini

• St. Tropez

• Rio

• Positano

• Miami

• Maui

• Maldives

• Boracay

Commonwealth

Acqua Private

Residences

Pampanga

Azure North

• Osmeña West

• Quezon North

• Roxas East

• Osmeña East

• Niagara

• Sutherland

• Dettifoss

• Livingstone

• Iguazu

Makati

Mandaluyong

Quezon City

Parañaque

San Fernando

Completed 3 projects with 77,740 sqm of GFA and 1,185 units in 2018

Page 7: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

7

HORIZONTAL AFFORDABLE HOUSING

BUSINESS HIGHLIGHTS

955 housing units

underway

259 Units Completed*

113 units due for

Turn-over

100 homeowners

scheduled for punch

listing

100% Acceptance

on first inspection

* As of December 2018

• JV with Mitsubishi Corporation

• Current Projects:

• Tanza, Cavite

• Townhouse Units and Single

Attach

• Total Planned GLA: 256,514 sq.m

• Lipa, Batangas

• 20 hectare development• 1,867 units valued at ₱2.8 billion

CPG plans to acquire 3-5 sites per year

Affordable segment to contribute at least

30% of Net Income in the next 3 years

Page 8: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

8

NEW PROJECTS UNDER AFFORDABLE

HOUSING PLATFORMCapitalizing on the country’s demand for affordable housing, which has an estimated backlog of roughly 6.6 million units, the new joint venture company will pursue the development of projects of scale in key locations outside of Metro Manila under a new brand called PHirst Park Homes.

PHirst Park Homes, Inc* – CPG’s 3rd joint venture project with Mitsubishi Corp

On May 16, 2018, CPG signed of a joint

venture agreement with Mitsubishi

Corporation to establish a new company for

affordable housing called PHirst Park Homes,

Inc.*

Under the terms of the agreement, CPG will

subscribe to 60% and Mitsubishi to 40% of the

authorized capital stock equivalent to P5

billion over the same 5-year horizon.

PHirst Park Homes, Inc. aims to launch about

15 projects within the next 5 years with a

total of roughly 33,000 units. Each site will be

15 to 20 hectares and it is currently in various

stages of land banking. This is equivalent to

around Php 57 B in Project Sales Value, with

capital expenditures estimated at around

Php10 B over the first 5 years.

*The Joint Venture Agreement for PHirst Park Homes, Inc. has secured

clearance from the Philippine Competition Commission.8

Page 9: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

9

LEISURE AND TOURISM

BUSINESS HIGHLIGHTS

PORTFOLIO

Eduardo Calma

DESIGNED BY ACCLAIMED LOCAL DESIGNERS

Location: the project is at the southwest portion of

Metro Manila and 17km from Tagaytay City’s

rotunda on the west edge. It is also near the

continuous development along the ridge of Taal

Volcano lake.

Access: The development’s site is lying between

two important roads of the region, namely:

Tagaytay-Nasugbu road and Amuyong Highway.

Elevation: Approximately 550m above sea level.

Climate: Cool mountain weather that drops to 16° C during the cooler months and 24° C during

the warmer months.

Terrain: Highly undulating hills.

CPG launched the first major leisure and tourism

project, Batulao Artscapes. The project will

feature a variety of benefits from water and land

based sports, dining and fine cuisine, beach front

entertainment, dedicated spa areas and

extensive children’s entertainment facilities.

Kenneth Cobonpue

Budji Layug

Budji Layug

Page 10: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

10

INVESTMENT PROPERTIES

BUSINESS HIGHLIGHTS

PORTFOLIO

Century City Mall Asian Century Center

133,293

172,796

306,736

2017 2018 2019

CONTINUOUS ROLLOUT

OF LEASING ASSETS

• 32% CAGR on Cumulative Gross Floor Area (sqm) between 2017 and 2019

• Revenues expected to hit ₱2.0 Billion by

2020

Novotel

Suites Manila

2013 2018

Century Diamond

Tower

20192019

Centuria Medical

Makati

2015

Leasing Assets Total GFA

Page 11: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

302

353395

92 91

2016 2017 2018 3M 2018 3M 2019

11

PROPERTY MANAGEMENT

NOTABLE PROPERTIES UNDER

MANAGEMENT

BUSINESS HIGHLIGHTS

REVENUES FROM PROPERTY MANAGEMENT

No. of Projects GFA (M sqm)

Residential 21 1,371

Commercial/

Office 25 1,211

TOTAL 46 2,582

CPMI Manages 2.6 Million sqm; 46 Projects

• Pacific Star Building

• Essensa East Forbes

• Trump Tower Manila

• Gramercy Residences

₱ Million

Page 12: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

FY 2018 FY 2017 Change % 3M 2019 3M 2018 Change %

TOTAL REVENUES 10,702 6,706 3,996 60% 2,773 2,709 64 2.4%

GROSS PROFIT 4,542 3,391 1,151 34% 1,147 1,150 -4 -0.3%

Gross Margin 42.4% 50.6% -8.1% - 41.4% 42.5% -1.1% -

Operating Expense 3,255 2,964 291 10% 694 846 -152 -18.0%

EBITDA 2,074 1,341 733 55% 620 460 160 34.7%

EBITDA Margin 19.4% 20.0% -0.6% - 22.4% 17.0% 5.4% -

Interest & Financing

Charges594 403 191 47% 107 130 -22 -17.3%

Net Income 1,118 650 468 72% 384 300 84 28.0%

Net Income Margin 10.4% 9.7% 0.8% - 13.9% 11.1% 2.8% -

12

FINANCIAL HIGHLIGHTS

• Full year net income of Php1.1 B, a remarkable 72% growth from Php650 M in 2017• Mainly driven by the completion of 3 residential buildings, an office tower and 259 affordable housing units• NIAT margin improved to 10.4% from 9.7% due to reduction in operating expenses

EPS in 2018 improved to P0.085 from P0.054 in 2017

Page 13: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

13

FINANCIAL CONDITION

In ₱ MillionAs of March

2019FY 2018 FY 2017

Total Assets 49,327 49,367 42,556

Total Liabilities 31,089 31,903 26,300

Equity 18,238 17,463 16,256

• Total assets increased by Php6.8 B to Php49.4 B in 2018 • Mainly due to higher cash balance and increase in construction of investment properties

FINANCIAL RATIOS

3M 2019 FY 2018 FY2017

Debt to EBITDA 8.3x 10.0x 12.0x

Return on Equity 8.6% 6.6% 4.1%

BALANCE SHEET

Page 14: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

14

SEGMENT REVENUE CONTRIBUTION

Vertical

Development,

93.4%

Investment Properties,

3.4%

Property

Management,

3.2%

FY 2015 FY 2018Horizontal

Affordable

Housing,

10.9%Investment

Properties,

3.8%

Property

Management,

3.7%

Vertical

Development,

81.6%

The goal is to grow CPG’s new allied real estate businesses to have a diversified revenue mix with more sustainable cash flow and recurring income

We are targeting a revenue mix of 1/3 each from Vertical Development, Horizontal Affordable Housing and Leasing Assets

Page 15: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

BUSINESS STRATEGY

15

Leverage the Company’s industry leading reputation and

experience in the high rise condominium market to develop

mid-rise condominium projects

Implement expansion outside Metro Manila for affordable

housing projects

Prudent expansion of commercial leasing portfolio to diversify

earnings and generate recurring income

Page 16: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

Mixed Use leasing projects in various locations including

Makati City, Quezon City and

Pampanga

Phirst Park Homes Pandi

Phirst Park Homes General Trias

Phirst Park Homes Calamba

Mid-rise residential buildings in the

CBDs and its peripheries in

various locations including Quezon

City, MandaluyongCity and Pampanga

16

NEW PRODUCT LINES FOR GROWTH

Total CAPEX Budget: P30 B in next 3 years

Urban Village

Investment Properties

Horizontal Affordable

Housing

Page 17: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

17

LAND BANK

Katipunan, Quezon

City

Novaliches,

Quezon City

San Fernando, Pampanga

Mandaluyong

Batulao

Palawan

Total Land Bank: 250.6 HA*

Calamba, Laguna

Pandi, Bulacan

*This excludes the 2.6 hectares that will be developed in Clark Global City.

CPG is building its land bank to further expand its in-city development projects and its footprint in strategic tourism destinations and provincial growth centers.

Page 18: Annual Stockholders’ Meeting - Century Properties€¦ · High End 11,767 11,767 Need 6,667,614 5,716,172 12,383,786 . Platforms Products PRODUCT OFFERINGS ... • Townhouse Units

Thank You!