MASS HOUSING developer 8990 Holdings, Inc. is banking on the acceleration of project launches to push revenues higher in 2018.
“We hope to be able to book at least P12 billion, on the low side, and hopefully we can do P14 billion revenues. Net income is 40% (of revenues), always. That’s what defines us as a corporation,” 8990 Chairman Mariano D. Martinez, Jr. told reporters after the listing ceremony of its P5-billion preferred shares last Friday.
The low end of the target is 20% higher than the P10 billion the company looks to post by the end of 2017.
Mr. Martinez said the company’s performance in 2018 will be boosted by more project launches as they have secured necessary permits.
“Kasi marami na kaming permits na nalabas, so we will be able to launch them faster,” he said.
The delay of project permits weighed on 8990’s financials in the first nine months of 2017, as it booked a 22% decline in net income to P2.47 billion during the period. Company officials, however, said that once construction picks up, 8990 will be able to attract more buyers.
8990 is planning to launch five projects worth P60 billion in sales next year, with one located in Cebu, one in Iloilo, two in Davao, and another in Ortigas.
At the same time, Mr. Martinez noted the housing demand has never waned, with the backlog in social housing estimated at 5.7 million houses.
“Because if you’re renting and I give you a proposition na ibayad na lang as monthly amortization…yung cash flow mo na dati for rental, for amortization na. Halos pareho lang,” Mr. Martinez said.
Asked if 8990 is looking to expand its portfolio in the commercial leasing business, Mr. Martinez said this is not part of company’s future plans. He noted 8990 will continue to be a housing company with a target market whose monthly income falls between P30,000 to P50,000.
“So a big portion of that goes to transportation cost, education, so ano na lang maiiwan for them to spend. We do have malls in certain situations, even the buildings will have commercial spaces. But we’re never going to be a big player in mall developments,” Mr. Martinez said.
8990 is currently building its first mall in Tondo, worth P452 million, to complement the 13-building condominium complex the company is constructing in the area. — Arra B. Francia