8990 Eyes Condo Projects as Fiscal Boosters

MANILA, Philippines – 8990 Holdings, Inc. (PSE:HOUSE), the country’s developer of low-cost housing, eyes its condominium projects in the National Capital Region (NCR) as fiscal record boosters in 2017.

Januario Jesus B. Atencio III, 8990 Holdings President and Chief Executive Officer, stated to reporters in a December 6 interview that HOUSE would likely obtain 45 percent of its gross returns from NCR condominium projects in 2017.  According to him, next year will be a more stable period. Particularly, Atencio claimed that the management is eyeing the rise of NCR market as its chief provider for growth.

There are two to three condominium projects set to be unveiled. The president added that if his forecast is right, next year will mark the portion of condominium developments in its gross sales at 45 percent.

At present, HOUSE anticipates registering sales worth P800 million from Mandaluyong City’s Urban Deca Tower. This is after the proceeds listing of 600 out of 1,148 units prior the schedule. The deliberation is previously set for next year’s first six months.

Atencio claimed that despite the issues and present status of the environment, the project was finished in advance and in fact, this is not a part of the current year’s direction. In other words, this could be a great assistance to assure that 8990 Holdings is maintaining yearly robust operations.

HOUSE’s Tondo, Manila’s Urban Deca Homes also contributed P800 million to P900 million after passing 600 units from one of its 13 residential buildings. In total, its properties offer 13,000 units. In the same area, development of its six buildings is ongoing.

The company is projecting to reach nearly P12 billion in gross sales and P4.8 billion in net income due to its condominium projects’ sales recognition prior the schedule. The predictions given are 20 percent above 2015’s record of P9.65 billion in gross sales and P4.05 billion in net income.

The end of 2016’s first nine months marked HOUSE’s net income growth by one percent from P3.17 billion last year to P3.19 billion. This was paired with an increase in revenue from P6.99 billion to P7.18 billion, a three percent climb.

Atencio stated that they gestate more or less 50 percent gross revenues in the fourth quarter. In other words, the management remains optimistic despite revealing that its three projects are postponed. The current year has been a turning point, particularly after the election in May. He claimed that they await final transition of the government next year.

About the Author
The Stock Signals Philippines is the online news media arm of Equilyst Analytics. Inc., an SEC-registered stock market consultancy firm in the Philippines that guides Filipinos on long-term investing and short-term trading and offers mentoring services.

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