8990 targets P60B in sales from 5 projects
By Arra B. Francia, Reporter
MASS housing developer 8990 Holdings, Inc. is looking to generate P60 billion in sales from five new projects to be launched next year.
“We’re looking at five new projects in 2018. Two in Visayas, with one in Iloilo, one is in Cebu, and two more in Davao, and a very big project in Ortigas,” 8990 Chief Operating Officer Willibaldo J. Uy told reporters after the listing ceremony of its P5-billion preferred shares on Friday.
8990 Chairman Mariano D. Martinez noted the company is currently in the process of securing permits for these projects, which are now “coming out in a more predictable manner.”
The listed property developer has previously encountered delays in getting permits, resulting to a slowdown in construction during the first half of 2017.
“To begin the process of getting approvals from the day you buy the property. You buy that property, ipasok mo na agad, para di ka maghintay nang matagal,” Mr. Martinez said.
Mr. Uy said the company has launched all of its projects for 2017, and is now working to speed up production.
With this, the company is targeting to hit the lower end of its P10 billion to P13 billion revenue guidance, with bottomline expected to come in at P4 billion or 40% of the revenue target.
8990 has so far booked a net income of P2.47 billion in the first nine months of 2017, 22% lower year-on-year, as delays in project launches pulled down earnings until the first half of the year.
Despite the lower profits so far this year, Mr. Martinez is confident 2017 “will still be a banner year for 8990.”
“We actually doubled what we made in the first semester, from P3 billion (revenues in the first half), it became P6.1 billion by the end of the third quarter. As far as sales take-up is concerned, I think once the buyer sees the buildings being put up, sales increase,” Mr. Uy added.
Meanwhile, 8990 said its P5-billion preferred shares offering on Friday was more than 1.3 times oversubscribed. The offer comprised 50 million preferred shares priced at P100 each, with a dividend rate of 6.0263% per annum, redeemable on the fifth anniversary of its listing date.
The company will be using the proceeds to pay off existing debt. It tapped ChinaBank Capita Corp to be the sole issue manager, lead underwriter, and book runner for the offer.
8990 is also currently awaiting approval from the Securities and Exchange Commission for its P10-billion shelf registration.
“Not sure yet when exactly next year, but it will happen next year. Most of the borrowings we get are usually to pare down debt,” Mr. Martinez said.
Shares in 8990 added five centavos or 0.91% apiece to close at P5.55 each at the stock exchange on Friday.
