8990 reports accelerated 9-mo. growth

The company reported unrealized revenues of P3.6 billion at the end of September

8990 Holdings Inc., listed on the Philippine Stock Exchange under the symbol “HOUSE” reported a 22 percent revenue growth in the first nine months to P10.5 billion from P8.6 billion last year.

This brings the company’s revenues to 78 percent of its full year target of P13.5 billion.

The double-digit revenue growth was fueled in large part by the positive buyer response to Urban Deca Homes in Manila, contributing P4.2 billion or 43 percent of 8990’s total gross revenues. Less than a year from its launch, more than five buildings of the 13-tower residential complex have sold out.

Per region, 8990’s Luzon housing projects contributed 71 percent of revenues followed by Visayas with 21 percent. The company’s projects in Mindanao brought in 8 percent of total revenues.

The company reported unrealized revenues of P3.6 billion at the end of September. 8990 expects to recognize P2.1 Billion of these by the end of the year. Revenues are expected to hit P20 billion in 2020 as its largest project to-date, Urban Deca Homes Ortigas, will begin to contribute to revenues.

In July 2019, 8990 Holdings launched its largest Metro Manila project, Urban Deca Homes Ortigas located along Ortigas Avenue Extension. Once completed, there will be a total of 19,046 condo units. After two months from the launch, the company reported sales reservations equivalent to P1.5 billion. Sales Reservation for the first nine months of 2019 rose 27 percent to 9,215 units from 7,265 units in the same period last year.

With a total landbank of 626 hectares — equivalent to a projected P154 Billion eventual sales — this will help further accelerate the company’s growth in the next years.

According to acting president and CEO, Alexander Ace Sotto, “This year is bittersweet for us. The passing of Willie J. Uy cast a shadow of unhappiness on the company that he loved so much. However, this has strengthened our resolve to continue the great work he did for the company. Our focus remains on further enhancing our core business and growing the company. As our company’s founders, Luis Yu and Marin Martinez, take a more active role we are confident that we will meet our targets and achieve greater things well into the future.”

Situated on an 8.4-hectare property, Urban Deca Homes Manila residential complex offers more than 13,000 units with an estimated sales value of P20 billion.