8990 Holdings Inc. (PSE: HOUSE) net income went up 37% to PhP1 billion compared to the PhP736 million reported in the previous year. Gross revenues grew 57% year-on-year to PhP2.5 billion in the first quarter of 2018 driven by 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% is slightly higher than its full year target of 37.5%.
Real estate sales increased 57% year on year to PhP2.5 billion as the company delivered a total of 1,786 homes. In Q1 2018, 56% of units delivered were from NCR followed by Visayas, which generated 24% of the total, while Mindanao sold 14%. Strong demand from locally-employed buyers helped lift reservation sales by 7% 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,” said President and CEO Willie J Uy.
Other Income declined 21% year-on-year to PhP350 million as the company’s receivables were liquidated to fund its various projects and further pay-off its outstanding loans. Meanwhile, rental revenue increased 8% to PhP2.6 million from PhP2.4 million.
Land acquisitions in the first quarter included an 822 sqm 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,” said President and CEO Wille J. Uy.
8990 Holdings is scheduled to launch a total of five projects nationwide in 2018 worth PhP60 billion.