SSS entry in Century Properties could attract other big investors
The P500-million entry of the Social Security System (SSS) in Antonio family-led Century Properties Group Inc. (CPG) could open doors for other big-time investors, according to an analyst.
This is developing as CPG pursues aggressive growth for its first-home segment.
“The entry of SSS creates a halo effect that could attract other institutional investors to take notice of the company’s promising fundamentals,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said on Friday.
CPG on Friday disclosed that the state-run pension fund bought 740.74 million shares at P0.675 each. It is a 4.93-percent discount over the listed developer’s current market price of P0.71.
SSS’ shareholding also represents a 6.39-percent ownership stake.
“Both CPG and SSS share a long-term perspective and remain optimistic about the growth prospects of CPG,” Jose Antonio, CPG executive chair, said in their disclosure on Friday.
“This collaboration reinforces our shared vision of sustainable growth and value creation,” Antonio added.
According to Colet, this was also a good move on the part of SSS, especially since CPG offered a dividend yield of 7.8 percent. It is among the highest for listed property developers. For example, SM Prime Holdings Inc. currently carries a yield of 2.06 percent, Ayala Land Inc. has 1.12 percent and Robinsons Land Corp. has 5.22 percent, Colet noted.
“Moreover, there is significant upside because CPG is expected to maintain its strong growth trajectory driven mainly by a very profitable affordable housing business under PHirst Park Homes,” he said.
CPG earlier confirmed it would spend P12 billion this year. Of which, up to P10 billion would be set aside for PHirst Park Homes. This mainly caters to first-time homebuyers and has been significantly contributing to CPG’s earnings.
In the first quarter, PHirst contributed P2.34 billion to the company’s revenues, representing 60 percent of the total. Meanwhile, the premium segment added 32 percent, or P1.2 billion.
CPG’s net income during the period jumped by 16 percent to P473 million.
The company launched the 142-hectare Century PHirst Centrale Batulao in Batangas province last March. So far, PHirst has 15,000 homes in its portfolio, with 10,000 units turned over to first-home buyers.
