Housing developer 8990 Holdings doubles revenues, profit in semester
Mass housing firm 8990 Holdings has doubled its performance in the first half of 2014 compared to the same period last year with interim earnings almost at par with figures for the entire 2013.
Sources said 8990 Holdings’ net income doubled to about P2 billion in the first semester of 2014 from P1 billion in the same period in 2013 on the back of strong sales of its housing units.
8990 President Januario Jesus Atencio said guidance for the first semester is for gross revenues to hit P4.1 billion, up 110 percent from P1.9 billion in the same period last year, on sales of 3,715 units.
Atencio said this puts them on track to hit their revenue target of P8 billion this year. Net income last year amounted to P2.18 billion while revenues reached P5.4 billion.
“Early this year, we were intending to achieve a performance level of 7,500 units, build, sell and deliver, roughly equivalent to P8 billion in value,” he said.
He added that “we’re right on track. We can easily say it’s now easier for us to achieve performance level target for the rest of the year because we have gained this kind of momentum,” he said.
Atencio explained that sales usually improve in the second half and the second quarter is the most difficult period during the year because people will also be spending for their summer vacation, graduation and enrolment.
Meanwhile, the firm continues to beef up its landbank and has acquired 85.3 hectares this year in Davao, Iloilo, Imus in Cavite, Bulacan, and Tondo on Manila.
Atencio said these are good enough for 25,445 housing units consisting of both vertical (Tondo and Imus) and horizontal (Davao Iloilo, Bulacan) developments.
As part of 8990’s target landbank of about 500 hectares, the firm is currently negotiating to acquire 121 hectares in Davao, 38 hectares in Cebu, 35 hectares in Angeles, 140 hectares in Cavite, 93 hectares in Bulacan, and 1.4 hectares along the Alabang-Zapote road.