LEADING mass housing developer 8990 Holdings Inc. posted a net income of P937 million in the first quarter, slightly higher than its P933 million bottom-line in the same period last year.
For the full year, 8990 sees its net income growing by 15-21 percent to a range of P3.8 billion to P4 billion.
“We did well in the first quarter given our goal to launch nine new projects this year, and we are on track to meet the P10-billion projected revenue by year-end,” 8990 president Januario Jesus Atencio said in a press statement on Friday.
8990 sees revenues growing between 23 percent and 28 percent to a range of P9.6 billion to P10 billion this full year.
During the first quarter, operating expenses of 8990 jumped by 21 percent year-on-year to P367 million due to the one-time payment of taxes arising from the sale of hotel buildings in Boracay and Baguio City to affiliate Azalea Leisure and Resorts Corp.
Without the one-time tax payment, the net income of 8990 would have increased by 3- percent to P1 billion, the company said.
Atencio said the company “remains bullish about the industry on the back of the country’s expanding economy, higher remittances from Filipinos working and living abroad, the growing business process outsourcing (BPO) and information technology (IT) sectors, amidst the four million housing backlog in the Philippines.”
Revenues from housing operations went up by 7 percent to P2.26 billion in the first three months, attributed to the 18 percent increase in sales reservations alongside the 4-percent rise in revenues from real estate operations.
Meanwhile, 8990 said “recurring” income in the form of contract to sell (CTS) receivables grew by 35 percent in terms of number of accounts while interest income from the said portfolio rose by 41 percent in the first quarter. Despite a double-digit increase in receivables portfolio, 8990 reported that collection efficiency remained stable at 95 percent.
The company is set to launch nine housing subdivisions and medium-rise building projects comprising of 4,486 housing units this year with a value of P4 billion this year. These include the Urban Deca Homes Campville in Muntinlupa; the Deca Homes Tanza in Cavite; Deca Homes Guadalupe (economic housing),a Homes Guadalupe (socialized housing), and Deca Homes Talisay 3 in Cebu; the Deca Homes Pavia 3 in Iloilo; as well as the Deca Homes Resort Residences Prime, Deca Homes Resort Residences Commercial Phase 11, and Deca Homes Catalunan Grande in Davao.