MASS-housing developer 8990 Holdings Inc. said its income climbed a slim 3 percent during the first half of the year, as most of its projects will be launched toward the end of the year.
Januario Jesus Gregorio Atencio III, the company’s president and CEO, said its net income reached P2.18 billion during January to June this year, from P2.12 billion last year. Gross sales grew 6 percent to P4.73 billion, versus P4.45 billion.
“The market remains robust, but most of our revenues from the projects will come on the fourth quarter when all of the projects have been launched. So we are very much on track,” Atencio said.
Fresh sales account for almost 90 percent of gross income for the first half and the rest came from canceled accounts, Atencio said.
Net margin reached 46 percent for the first half of the year exceeding the guidance of 40 percent, but lower than last year’s 48 percent.
Atencio said the company only launched four projects in the first half of the year, or just a portion of its 14 planned project launches this year. Another four will be launched during the third quarter.
The company delivered 4,289 units worth P4.73 billion exceeding its internal target of 3,899 units worth P3.58 billion by 32 percent.
Atencio said the precast technology allows the company to build strong houses in as fast as eight days.
Since the use of precast wall panels in 2004 instead of hollow blocks in building houses, 8990 has produced 43,306 units in 39 completed projects.
“Our buyers are deeply aspirational—they want to move up from being renters into property owners. But they are practical—they want value for money. And they are optimistic,” he said.
He said millennials aged between 20 and 35 are now major buyers accounting for 55 percent of the total sales of 8990 last year, from 50 percent in 2014.
8990 booked a positive cashflow of P41.64 million in the second quarter, from a deficit of P525.99 million in the first quarter due to increased levels of Home Development Mutual Fund takeouts and month amortization collections from its P20.6 billion contract-to-sell portfolio.
8990 grew its land bank to 555 hectares with an expected yield of over 107,376 units worth P115 billion.
It recently purchased at 2-hectare lot at Litex Road in Commonwealth, Quezon City.