Century Properties Group Inc. · PSE:CPG
Century Properties — Q2 2014 Earnings Presentation
42 slides from Century Properties's earnings presentation, Aug 20, 2014
Slide 1: Analysts Presentation
CENTURY PROPERTIES GROUP, INC. Analysts Presentation August 20, 2014
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER These materials have been prepared by Century Properties Group, Inc. (together with its subsidiaries, “CPGI”, the "Company”, or “Century”), and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be
Slide 3: Contents
CONTENTS 1 MARKET UPDATE FINANCIAL PERFORMANCE AND 2 CAPITAL MANAGEMENT 3 WHERE WE ARE NOW 4 WHERE WE ARE GOING 5 NEW PROJECT LAUNCHES 6 CONSTRUCTION UPDATE 7 RECENT AWARDS 8 Q&A
Slide 4: Market Update
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Slide 5: Real Estate Market Overview
REAL ESTATE MARKET OVERVIEW Remaining Inventory Life (in # of Years) 3.0 2.6 2.6 2.5 2.4 2.0 2.0 2.0 1.9 1.9 1.8 1.6 1.6 1.6 1.6 1.5 1.5 1.5 1.4 1.4 1.3 1.3 1.3 1.1 1.1 1.0 1.0 0.8 0.6 0.5 0.0 2012 2013 Q1 2014 Q2 2014 Economic Affordable Middle Income Upscale Luxury All Segment Source: Colliers Int
Slide 6: CPG's Target Markets
CPG’s TARGET MARKETS CPG retains premium pricing across all market segments Colliers‟ Price Points CPG‟s Price Points Economic Below P1.25M None Affordable P1.25M to P3.0M P2.3M to P3.6M Middle Income P3.0M to P5.0M P3.7M to P7.2M Upscale P5.0M to P7.0M Luxury P7.0M and above P7.3M and above 5
Slide 7: Where We Are Now
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Slide 8: Results Overview
RESULTS OVERVIEW PHP (Million) Q2 2014 Q2 2013 H1 2014 H1 2013 Total Revenues 2,743 2,693 5,620 5,291 Gross Profit from Real Estate Development1 926 1,048 1,815 1,926 EBITDA1 802 839 1,589 1,580 Net Income 544 555 1,058 1,056 Gross Profit Margin from Real Estate Development1 39.9% 44.0% 38.2% 42.1%
Slide 9: Project Portfolio: 92% Sold as of June 2014
PROJECT PORTFOLIO: 92% SOLD AS OF JUNE 20141 Launching projects in a staggered manner to prevent build-up of inventory Luxury: 3 Buildings, 79% Sold1 Middle Income: 10 Projects, 94% Sold1 Affordable: 17 Buildings, 91% Sold1 1Excluding unlaunched projects 10
Slide 10: Ability to Increase Selling Price Due to Premium Products
ABILITY TO INCREASE SELLING PRICE DUE TO PREMIUM PRODUCTS Luxury (Ave. PSM, Sold) Middle Income (Ave. PSM, Sold) 260,000 170,000 169,423 258,564 168,000 258,000 166,000 256,000 254,045 164,000 254,000 161,888 162,000 252,000 160,000 250,000 158,000 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Affordable (Ave. PS
Slide 11: Pre-Sales
PRE-SALES Balanced Product Mix Q1 2014 By Product: Php5.4 B Total Pre-sales Q2 2014 By Product: Php6.0 B Total Pre-sales Luxury Luxury 10% 15% Middle Income 22% Middle Income 21% Affordable 65% Affordable 69% Note: Luxury, Middle Income and Affordable markets are defined wherein majority of the unit
Slide 12: Pre-Sales: International Sales Platform
PRE-SALES Industry Leading International Sales Platform Q2 2014 By Geographic Location Q2 2014 By Country Middle East Others 15.1% 6.3% Philippines 21.8% North Asia America 26.5% 19.0% Europe International 11.2% 78.2% Philippines 21.8% 13
Slide 13: Financial Performance and Capital Management
FINANCIAL PERFORMANCE AND CAPITAL MANAGEMENT 3
Slide 14: Recent Transaction
RECENT TRANSACTION CPG has priced its P2 B maiden Unsecured Fixed-Rate Peso Retail Bonds offering on August 14, 2014. SEC issued a Certificate of Permit to Offer the bonds on August 15, 2014. Century Properties Group, Inc. (“CPGI”, “Century”, or the Issuer “Company”) PHP-denominated SEC-registered u
Slide 15: Healthy Balance Sheet
HEALTHY BALANCE SHEET Amount in Php Million 2011 2012 2013 June 2014 Cash and Cash 367 902 1,439 1,138 Equivalents Total Assets 10,033 18,556 26,166 27,836 Total Borrowings 883 3,661 6,039 7,323 Net Debt 516 2,759 4,600 6,185 Stockholder‟s Equity 4,322 8,241 11,435 12,309 Debt-to-Equity Ratio Net De
Slide 16: Improving Operating Cash Flow
IMPROVING OPERATING CASH FLOW Amount in Php Million 2010 2011 2012 2013 June 2014 Cash Flow from Operations (922) (252) (3,414) (1,586) (566) Cash Flow from Investing (109) 325 (863) (1,548) (772) Cash Flow from Financing 1,177 11 4,812 3,671 1,037 Change in Cash 147 84 535 537 (301) Beginning Cash
Slide 17: More Credit Facilities, Lower Cost of Debt
MORE CREDIT FACILITIES, LOWER COST OF DEBT Approved Credit Facilities (Php Million)1 Cost of Debt Number Weighted Average Interest Rate2 Of Banks 3 3 11 11 11 10.0% 9.5% 13,000 9.5% 11,195 9.0% 11,000 8.9% 9,475 8.5% 9,000 8.0% 6,571 7.5% 7.5% 7,000 7.0% 5,000 6.5% 6.0% 6.0% 6.0% 3,000 2,395 1,695 5
Slide 18: Sustained Earnings Growth Momentum
SUSTAINED EARNINGS GROWTH MOMENTUM Key Income Statement Details Total revenues (Php Million) Gross profit from real estate development1 (Php Million) 12,000 Margin (%) 37 42 45 42 38 10,809 6,000 9,611 10,000 5,000 4,192 8,000 3,962 4,000 5,291 5,620 6,000 4,702 3,000 4,000 1,751 1,926 1,815 2,000 2
Slide 19: Stable Revenues from Property Management
STABLE REVENUES FROM PROPERTY MANAGEMENT Total Revenues from Property Management (Php Million) 350 300 254 250 222 192 200 150 139 141 100 50 0 2011 2012 2013 H1 2013 H1 2014 Largest Independent Property Manager with 51 Notable Projects Under Management, with 80% Buildings Totaling 2.6M sqm under Ma
Slide 20: Where We Are Going
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Slide 21: Expansion into Commercial Property Segment
EXPANSION INTO COMMERCIAL PROPERTY SEGMENT By 2019, CPG‟s leasing portfolio hopes to provide a stable and balanced stream of cash flows Projected GFA Asset Type (in sqm)1 Mall, Century City Retail 52,233 Centuria, Century City Medical office 5,620 2012 to 2016 Projects 57,853 Spire, Century City Off
Slide 22: Century City Mall
1 CENTURY CITY MALL Century City Mall is CPG‟s first standalone retail development and is Makati‟s newest mall in close to a decade 5-story mall with 3 basement floors 527 parking slots, 110 retail stores 17,000 net leasable area 99% leased, 100% reserved Launched: 2011 Completion: 2013 Opening date
Slide 23: Centuria Medical Makati
2 CENTURIA MEDICAL MAKATI Centuria Medical Makati is CPG‟s medical-IT outpatient building that will be completed by the end of 2014 • first of its kind in the country that combines the intelligent use of IT with efficient health care • 28-storey building in Philippine Economic Zone Authority (PEZA)
Slide 24: Fort Bonifacio Office Building
3 FORT BONIFACIO OFFICE BUILDING The planned office development in Bonifacio Global City will be CPG‟s first venture in the office property segment SHANGRI-LA THE MIND BONIFACIO MUSEUM HIGHSTREET FORT TOWER The images and details shown herein are intended for illustration purposes only. While the in
Slide 25: Century Spire
4 CENTURY SPIRE Century Spire is the last of the five residential skyscrapers to rise in Century City. The building‟s architecture was designed by Daniel Libeskind, while its amenities will be interior designed by Armani Casa Spire The images and details shown herein are intended for illustration pu
Slide 26: New Project Launches
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Slide 27: Century Spire
1 CENTURY SPIRE • luxury residential-office development • the first “Century-branded” development of CPG • the building will have more than 60 floors • will feature a grand lobby, library, pool, juice bar and relaxation area in its residential floors. The images and details shown herein are intended
Slide 28: Acqua
2 ACQUA 6 • The 40-story building will comprise of approximately 466 units and a GFA of more than 30,000 sqm. • The building will have Branded Residences and condotel component to be managed by Accor, the largest Hotel operator in the World, under the Novotel Suites Brand • Will feature a first clas
Slide 29: Azure North
3 AZURE NORTH • on 8 hectares of prime location in San Fernando, Pampanga • mixed-use with residential community, retail complex, and planned corporate office towers and hotel • 7 residential towers/town house clusters The images and details shown herein are intended for illustration purposes only.
Slide 30: Azure North – First Building
AZURE NORTH – FIRST BUILDING The images and details shown herein are intended for illustration purposes only. While the information are based on present plans, which have been created with great care and effort, the developers reserve the right to change any and all products, proposed project featur
Slide 31: Construction Update
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Slide 32: Azure Urban Resort Residences
1 AZURE URBAN RESORT RESIDENCES Azure Urban Resort Residences‟ three completed towers, the recently-inaugurated Paris Beach Club, and Positano tower, the next building for completion 35
Slide 33: Azure Urban Resort Residences
1 AZURE URBAN RESORT RESIDENCES Miami (left) and Positano (right) continue interior activities in June 36
Slide 34: Acqua Private Residences
2 ACQUA PRIVATE RESIDENCES • Finishing works continue for The Niagara tower and The Sutherland tower • Dettifoss and Missoni Home-interior designed Livingstone continue structural works The first four towers rising at Acqua Private Residences -- (The Niagara, Sutherland, Dettifoss and Livingstone) 3
Slide 35: Centuria Medical Makati
3 CENTURIA MEDICAL MAKATI Centuria Medical Makati is on schedule for completion by end of 2014 A view of Centuria Medical Makati‟s northwest elevation 38
Slide 36: The Residences at Commonwealth
4 THE RESIDENCES AT COMMONWEALTH Finishing works on-going at Osmeña West 39
Slide 37: Recent Awards
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Slide 38: Recent Awards
RECENT AWARDS Century City Mall Century City Mall Highly Commended Highly Commended Azure Urban Resort Residences Best Commercial Best Commercial Winner, Best Mid-Range Condo Development Architectural Development (Manila) 2014 – (Retail), 2014 – Design (Retail), Philippine Property Awards Philippine
Slide 39: Recent Awards
RECENT AWARDS Best Structured Best Premier Real Trade Finance Estate Developer, Solution 2014 – 2013 – Capital The Asset Finance Awards International Awards One of the Most Top Ten Promising Developers in Companies 2013 the Philippines – Corporate 2014 – BCI Asia Governance Asia 42
Slide 40: Recent Awards
RECENT AWARDS Developer with the Most Number of Condominium Units Licensed Under PD 957 in 2013 - Housing and Land Use Regulatory Board Asia‟s Most Top Ten Promising Developers Company on in the Corporate Philippines Governance, 2013 – BCI 2013 – Asia FinanceAsia 43
Slide 41: Q&A
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Century Properties Group — Q2 2014 Earnings Presentation on 6ix