Leading mass housing developer 8990 Holdings posted a 37-percent year-on-year growth in first quarter net profit to P1 billion on higher real estate revenues and better-than-targeted margins.

Gross revenues rose by 57 percent year-on-year to P2.5 billion, posting its strongest first-quarter residential topline performance so far, driven by the increased contribution of its various projects nationwide.

Net income margin of 40 percent was also slightly higher than its full-year target of 37.5 percent, the company disclosed to the Philippine Stock Exchange on Wednesday.

Real estate sales increased by 57 percent year-on-year to P2.5 billion as the company delivered a total of 1,786 homes. In the first three months, 56 percent of units delivered were from the National Capital Region. Visayas generated 24 percent of the total sales while Mindanao accounted for 14 percent.

In terms of volume, 8990 reported that strong demand from locally-employed buyers helped lift reservation sales by 7 percent year-on-year to 2,113 units.

“We continue to build affordable homes nationwide given the strong demand we have seen. We expect this to further improve as the country’s economy grows,” 8990 president and chief executive officer Willie Uy said.

On the other hand, other income declined by 21 percent year-on-year to P350 million as the company liquidated receivables to fund its various projects and further pay off its outstanding loans. Meanwhile, rental revenue increased by 8 percent year-in-year to P2.6 million in the first three months.

Land acquisitions in the first quarter included an 822-square meter property along Taft Avenue, Manila and a 5.7-hectare lot in Ormoc, Leyte.

“We are very excited about the addition of Taft and Ormoc into our land bank. Our Taft property’s location near the LRT linemay fit well into our model of building homes that appeal to both students and the working public because of its proximity to MRT and LRT stations much like Urban Deca Tower Edsa. This is located near the Shaw Boulevard MRT station and was fully sold just two years after it was launched. Meanwhile, our Ormoc property not only expands our reach in the Visayas region, but more importantly, it allows us to tap into the future growth of the housing industry in the area,” Uy added.

8990 plans to launch a total of five projects nationwide worth P60 billion this year.

Reference Link: Philippine Daily Inquirer