Corporate News

By Krista A.M. Montealegre,
National Correspondent

DMCI Homes reservation sales to hit P25.5 billion for Dec.-June

Posted on June 07, 2017

THE property arm of DMCI Holdings, Inc., the holding firm of the Consunji family, will hit its 12-month target for reservation sales this month on strong demand for its projects in Metro Manila and key urban cities.

DMCI Homes' Oak Harbor Residences in Parañaque City
DMCI Homes President Alfredo R. Austria said in a briefing in Palawan over the weekend that reservation sales for the December to June period will reach a total of P25.5 billion, representing the residential developer’s goal for the 12-month period ending December 2017.

“We start counting in December. From December to June, seven months, we will hit our 12-month target,” Mr. Austria said.

DMCI Homes declined to provide a new official target for reservation sales, but DMCI Holdings President and CEO Isidro A. Consunji had said sales are “trending” at the P44-billion level for the 12-month period.

Meron kasi kaming mga magagandang ni-launch na projects, but I think it’s because mas kilala na ’yung DMCI Homes and marami sa sales namin ang referrals from previous buyers... We are now seeing their impact on sales,” Mr. Austria said.

DMCI Homes recognized strong sales from Oak Harbor Residences in Parañaque City, the company’s first foray into luxury development.

The property firm also saw brisk take-up for developments outside Metro Manila, particularly Davao City and Baguio City, which will generate P5.4 billion and P1.6 billion, respectively, once fully sold.

DMCI Homes is rolling out eight projects this year with a total value of P57 billion, or 50% more than the P38 billion generated by the seven projects launched last year.

This month, the company is launching a 25-storey residential building in Cubao, Quezon City.

DMCI Homes is shifting to a new accounting system in the second quarter after being required by the Securities and Exchange Commission (SEC). The company will start recognizing revenues based on percentage of completion compared to its previous practice of realizing sales only when the unit is fully completed.

Kami naman sanay kami sa finished project. Kung lilipat sa percentage of completion, tataas ang earnings namin,” Mr. Consunji said.

DMCI registered an 11% drop to P594 million in its first-quarter earnings contribution to the listed holding company, mainly due to deferred recognition of revenues from its high rise projects which normally take three to four years to complete.

DMCI Holdings’ net profit rose 22% to P3.7 billion in the first three months of 2017 from P3 billion a year earlier, riding on the strength of its coal business that offset declines across other business segments.

Shares in DMCI Holdings added 18 centavos or 1.29% to close at P14.10 apiece.