Century Properties in P800-M share buyback program to enhance valuation

Listed-property developer Century Properties Group Inc. on Tuesday it is staging a 24-month share buyback program starting this month to enhance the value of its the stocks. 

 

In a statement, Century Properties said its board of directors “approved the proposal to buyback to P800M worth of shares within a 24-month period beginning January 2013.”

 

The developer said, however, it will buy back shares on the following conditions: “... only if and to the extent that the price per share is deemed undervalued, share prices are considered highly volatile, or in any other instance where the Corporation believes that a buyback will result in enhancing shareholders’ value.”

 

The rationale behind the buyback program is to enhance the share value's “real worth,” Century Properties investor relations head Kristina Garcia told GMA News Online.

 

“The management believes that the current share price [of Century Properties] doesn't reflect at all what its worth is,” she noted, adding that even with the “share price's recent breakout it's undervalued.”

 

Asked why unveil the buyback program now, Garcia said, “It's been hovering for a long time now. 

 

“We decided that now is the right time given the expansion plans of the company,” she added. 

 

Century Properties is currently undertaking high-end projects like  Gramercy Residences and Trump Tower in its development complex in Makati City as well as Azure Urban Resort Residences in Parañaque, among others, the statement said. 

 

As of December 2012, the property developer has completed 21 condominium buildings and is managing 50 estates. 

 

On Tuesday, Century Properties shares closed at P1.74, up P0.07or 4.19 percent from P1.67 Monday. — VS, GMA News