8990 Holdings Inc., said profit for the first quarter of the year reached P1 billion, up 37 percent from P736 million the previous year.

Revenues rreached P2.5 billion, up 57 percent from last year’s P1.59 billion, marking its strongest first quarter residential revenues so far.

“Topline growth was mainly driven by the increased contribution of its various projects nationwide. Net income margin of 40 percent is slightly higher than its full year target of 37.5 percent,” the company said.

Real estate sales increased 57 percent to P2.5 billion as the company delivered a total of 1,786 homes.

For the period, 56 percent of units delivered were from NCR followed by Visayas which generated 24 percent of the total while Mindanao sold 14 percent, 8990 noted.

“Strong demand from locally-employed buyers helped lift reservation sales by 7 percent to 2,113 units,” it said.

“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,” said Willie Uy, 8990 president.

Rental revenue reached P2.6 million, up 8 percent from P2.4 million.

The company said it liquidated some of its receivables to fund various projects and further pay off its outstanding loans.

“Land acquisitions in the first quarter included an 822-square meter property on Taft avenue, Manila and a 5.7 -hectare lot in Ormoc, Leyte,” the company said.

“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” said Uy.

8990 Holdings is set to launch five projects nationwide in 2018 worth P60 billion.

Reference Link: Malaya Business Insight