8990 Holdings regains profit momentum in Q3

Top mass housing developer 8990 Holdings reported a 9 percent growth in net income to R1.2 billion in the third quarter of the year as revenues jumped 29 percent to R3.1 billion from strong housing demand in all its projects across the country.

In a statement, the firm said this brings revenues for the first nine months to R6.1 billion, on track to meet 8990’s full year target of at least R10 billion.

“Momentum has shifted to create a turnaround in our third quarter revenues. 8990’s presence in Luzon, Visayas, and Mindanao allows us to easily capture the growing affordable housing demand across the country,” said 8990’s Incoming President Willie J. Uy.

He noted that, “the real challenge for us now is keeping up with the evergrowing housing demand which so far has resulted in a housing backlog of 5.9 million.”

In the third quarter, Uy said 8990 saw how fast the market can absorb readily available units in developments such as Iloilo and Manila.

“Once we started completing units and securing permits, we saw number of units sold in Iloilo go up by 204 percent while recognized units sold in Manila nearly doubled from what it did in the first half of 2017,” he added.

A total of 4,431 units were delivered in the first nine months of the year with Luzon contributing 59 percent of the total followed by the Visayas region with 30 percent and Mindanao with 11 percent.

Meanwhile, income from its ContractTo-Sell (CTS) portfolio of R1.1 billion rose 3 percent year on year. (JAL)