Leading mass housing developer 8990 Holdings posted a 37-percent year-on-year growth in first quarter net profit to P1 billion on higher real estate sales and better-than-targeted margins.
8990 disclosed to the Philippine Stock Exchange yesterday that gross revenue rose by 57 percent year-on-year to P2.5 billion in the first quarter, posting its strongest first-quarter residential topline performance so far, driven by increased contribution from its various projects nationwide.
The net income margin of 40 percent was also higher than its full-year target of 37.5 percent.
Real estate sales rose by 57 percent year-on-year to P2.5 billion as the company delivered a total of 1,786 homes. In the first three months, 56 percent of units delivered were in the National Capital Region. Visayas accounted for 24 percent of total sales and Mindanao, 14 percent.
In terms of volume, 8990 said strong demand from locally employed buyers helped lift reservation sales by 7 percent year-on-year to 2,113 units.
“We continue to build affordable homes nationwide given the strong demand we have seen. We expect this to further improve as the country’s economy grows,” 8990 president and chief executive officer Willie Uy said in a statement.
Other income declined by 21 percent year-on-year to P350 million as the company liquidated receivables to fund various projects and pay outstanding loans. Meanwhile, rental revenue rose by 8 percent year-on-year to P2.6 million in the first three months.
Land acquisitions in the first quarter included an 822-square-meter property along Taft Avenue, Manila and a 5.7-hectare lot in Ormoc, Leyte.
“We are very excited about the addition of Taft and Ormoc into our land bank. Our Taft property’s location near the LRT line may fit well into our model of building homes that appeal to both students and the working public because of its proximity to MRT and LRT stations much like Urban Deca Tower Edsa. This is located near the Shaw Boulevard MRT station and was fully sold just two years after it was launched.
8990 plans to launch five projects nationwide worth P60 billion this year.