MASS HOUSING developer 8990 Holdings, Inc. posted a 13% profit increase in 2018, driven by higher real estate sales from several projects across the country.
In a regulatory filing, the listed firm said net profit reached P4.67 billion last year from the P4.14 billion posted in 2017. Revenues also rose 15% to P11.75 billion.
8990 noted that revenues exceeded its target of P11.5 billion in 2018. Real estate sales accounted for bulk of the firm’s revenues at P11.68 billion, a 15% improvement from the previous year’s P10.17 billion. The company attributed the positive performance to higher sales from 11 projects that are currently under construction.
“It comes to no surprise that momentum in our real estate business has remained strong throughout the year. Our company is built on solid ground and the excellent results in 2018 reflects the strong interest for our products even at a time when inflation has been moving up,” 8990 said.
Hotel operations also started generating revenues at P55.5 million. The company earlier said that it will spend P5 billion over the next five years for the development of projects under hotel brands Adama, Kura, and Argo.
8990 spent P8 billion in capital expenditures in 2018. This year, it allocated P12 billion to support its goal of recording P13.5 billion in revenues.
The company is banking on sales from Urban Deca Homes Manila in Tondo to drive its revenues for the year. The 13-tower residential complex will offer more than 13,000 units worth about P20 billion. — Arra B. Francia