Mass housing firm 8990 posts 31% profit climb on record revenues

EARNINGS of mass housing developer 8990 Holdings, Inc. jumped 31% to P1.82 billion in the third quarter on the back of record-high quarterly revenues amid the coronavirus pandemic.

In a regulatory filing on Monday, 8990 said it generated P4.83 billion revenues in the July-to-September period, up 38% from the same period a year ago.

“After we felt the impact of four consecutive months of lockdown in the first half of this year, I am happy to report that we registered a very strong third quarter, our highest quarterly performance in the 17 year history of 8990,” 8990 Acting President and CEO Alexander Ace Sotto said in a statement.

“Our performance for this period shows the resilience of the affordable housing sector and affirms the need to fill the ever-growing housing backlog in the Philippines,” he added.

Real estate sales added P4.83 billion to the company’s revenues, while rental income contributed P2.85 million. These offset the P28,393 losses that came from its hotel operations.

Year-to-date, 8990’s attributable net income stood at P3.31 billion, down 21% from the same period last year. Revenues likewise slid 7% to P9.74 billion.

The company said the declines are due to its weak second quarter, which can be traced to construction challenges in the first half of 2020. At the time, the coronavirus-related lockdown in the country was stricter.

At the end of the third quarter, 8990 was able to deliver 3,083 units of affordable housing, bringing its nine-month sales to a total of 6,794 units. It noted the projects delivered in the third quarter almost match six months’ worth of homes sold.

Most of these projects, or 53% of the total, are located in Luzon. Some 27% are in Visayas and 20% in Mindanao. About 53% are horizontal projects, while 47% are vertical projects.

“This global pandemic has added pressure to businesses in all industries including ours. Since March of this year, we have been working on adjusting to this new reality by closely monitoring and managing our liquidity, strengthening our organization, and finding better ways to reach out to our existing and potential buyers,” Mr. Sotto said.

Shares in 8990 at the stock exchange picked up 24 centavos or 3.12% to close at P7.94 each on Monday. — Denise A. Valdez

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Article and Photo originally posted by Business World last November 10, 2020, 12:06am.