MASS HOUSING developer 8990 Holdings, Inc. tripled its net income in the second quarter of 2018, lifted by the higher number of residential units it sold for the period.

In a statement issued Wednesday, the listed property developer said net income accelerated to P1.38 billion, versus the P469.20 million it delivered in the same period a year ago. Revenues more than doubled to P3.5 billion, against the P1.45 billion it posted in the first half of 2017.

“Historically, across the real estate sector, the second quarter is usually a slow period but we have seen that this is not the case for 8990 as we continue to bring something that goes beyond just mere affordability. More importantly, we deliver value for money homes to hard working Filipinos,” 8990 Holdings President and Chief Executive Officer Willibaldo J. Uy said in a statement.

This pushed 8990 Holdings’ net income for the first half to P2.39 billion, almost double the P1.22 billion it generated in the same period a year ago. The company’s revenues likewise soared 98% to P6 billion.

The company’s mass housing segment accounted for 59% of total revenues, while medium-rise and high-rise buildings contributed the balance of 41%.

Projects in the National Capital Region contributed 32% of its revenues, followed by those in Iloilo and Bacolod that generated 19% of the total revenues.

8990 Holdings also worked on managing costs for the first semester, letting it bring down operating expenses by 2.3% to P723.56 million. This pushed margins to 39.8%, slightly above its 38% target for 2018.

“This makes me even more confident that we will hit our P11.5 billion revenue goal by the end of the year,” Mr. Uy said.

The company has recently launched the P35-billion Ortigas Extension project, which is expected to drive growth for the second half of the year. The 22-building condominium complex is 8990 Holdings’ largest project to date, offering a total of 18,993 units across mid-rise buildings with 13 to 15 floors each.

The Ortigas Extension project is similar to its Urban Deca Homes Manila development in Tondo, housing 13 mid-rise buildings with a total of 13,212 condominium units for the affordable market.

8990 Holdings’ land bank is currently at 532 hectares, which the company said is enough for the next eight to 10 years. Once developed, the total land bank is expected to generate P156 billion in sales.

Shares in 8990 Holdings went up by 0.39% or three centavos to close at P7.80 each at the Philippine Stock Exchange on Wednesday. — Arra B. Francia

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