Advertisement

8990 Q1 profit hits P1B

Font Size

EARNINGS of 8990 Holdings, Inc. grew by more than a third in the first quarter of 2018, fueled by the delivery of more housing projects across the country.

In a statement issued Wednesday, the mass housing developer said net income reached P1 billion in the quarter, 37% higher than the P736 million it realized in the same period a year ago. Gross revenues jumped 57% to P2.5 billion, due to increased contributions from its projects nationwide.

The listed firm delivered 1,786 homes valued at P2.5 billion in the January to March period, marking a 57% year-on-year increase. More than half of the units came from projects in the National Capital Region, while were 24% in the Visayas and 14% were in Mindanao.

Reservation sales improved by 7% to 2,113 units, following robust demand from local buyers.

“We continue to build affordable homes nationwide given the strong demand we have seen. We expect this to further improve as the country’s economy grows,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said in a statement.

The company’s rental revenues picked up 8% to P2.6 million for the period. It also reported a 21% drop in other income to P350 million after liquidating its receivables to fund its projects and to pay outstanding loans.

8990 Holdings acquired an 822-square meter property along Taft Avenue and a 5.7-hectare lot in Ormoc, Leyte in the first quarter as part of its land banking initiatives.

Located near the Shaw Boulevard station of the Metro Rail Transit Line 3, Urban Deca Tower EDSA is the company’s first high rise project offering a total of 1,143 units across 42 floors. Mr. Uy noted the company was able to sell out the project two years after its launch.

8990 Holdings plans to launch five projects worth P60 billion this year.

Shares in 8990 went up 0.7% or five centavos to close at P7.15 each at the stock exchange on Wednesday. — Arra B. Francia