Core businesses drive 16% rise in 8990 profits

MASS housing developer 8990 Holdings, Inc. saw net income last year grow 16 percent to P4.14 billion from P3.58 billion in 2016 on the strong performance of its core real estate businesses.

“We are extremely happy to end the year strong. The tremendous effort poured in by all of 8990’s employees and the strong support we continue to receive from the members of our Board has always been key to the Company’s success,” 8990 President Willibaldo Uy told the Philippine Stock Exchange.

Consolidated revenues rose 10 percent to P10.18 billion from P9.27 billion in 2016, surpassing its target of P10 billion. Real estate revenue increased by 12 percent year- on- year to P10.17 billion, while rental revenue dipped to P10.9 million from P12.2 million the year before. “We look forward to bringing 8990 to greater heights as we launch more large-scale projects that will surely strengthen our position in the affordable housing industry,” he added.

In 2017, 8990 delivered a total of 7,348 residential units, with Luzon contributing more than half, or 54 percent, of the total turnover, while Visayas and Mindanao accounted for 33 percent and 12 percent, respectively.

It launched seven projects last year comprising of 23,661 residential units. These included Deca Homes Marilao in Bulacan, Deca Homes Mulig in Davao, Deca Homes Pavia Resorts & Residences Phase 2 in Iloilo, Deca Homes Sta. Barbara in Iloilo, Deca Homes South Bacolod in Bacolod and Urban Deca Homes Tisa 2 in Cebu.

In terms of value, Luzon generated 58 percent followed by Visayas with 33 percent and Mindanao with 9 percent. Contribution from medium-rise buildings and high- rise buildings to housing revenue increased from last year’s 26 percent to 47 percent.

Reservation sales were up 3 percent at 8,387 units from 8,111 in 2016, while its land bank at end2017 was at 510 hectares worth P152 billion. The company said this land bank will be developed in the next eight to 10 years.

For this year, 8990 plans to launch five developments worth P60 billion, expanding its geographically diversified real estate portfolio.