MASS HOUSING developer 8990 Holdings, Inc. said revenue rose 142% to P3.5 billion during the second quarter, amid pent-up demand for affordable housing.
The listed firm, in a statement, did not report second quarter profit figures. However, it said its first half revenue of P6 billion grew 98% and exceeded the company’s internal target.
“There is pent-up demand. This must have been one reason why we have this unexpected surge… also (buyers) look at pricing. We tried to maintain our prices as best as we can, and this boded well for us,” 8990 Holdings Chief Executive Officer Willibaldo J. Uy told reporters at a briefing after the company’s shareholder meeting in Makati City yesterday.
Mr. Uy said that the second quarter is typically a slow period for property developers. 8990 Holdings’s revenue fell 36% in the first half of 2017.
The company said its net profit margin was 40% for the first half, while net profit for the period was P2.4 billion, doubling from a year earlier.
“We’re confident that we’ll meet our targets. We’re quite lucky we were able to reach this level. Normally third quarter is good,” Mr. Uy said.
8990 Holdings said earlier that it hopes to book a P4.31-billion profit in 2018, amid projected revenue of P11.5 billion.
The company is banking on its P35-billion Ortigas Extension project to be one of the growth drivers for this year. The residential condominium complex consists of 22 buildings with 13 to 15 floors each, offering a total of 18,993 units.
While the company has yet to secure a license to sell the Ortigas Extension project, Mr. Uy said it is confident of obtaining the permit and start selling before the year ends.
Meanwhile, 8990 Holdings is planning to issue P3 billion worth of securities in the third quarter. These include the sale of the firm’s contract-to-sell receivables, consisting of loans averaging P950,000 each at a maximum period of 20 years.
The company has been selling its receivables to banks in previous years to boost cash.
8990 Holdings fell 10 centavos or 1.32% to P7.50 on Monday. — Arra B. Francia