Mass housing developer 8990 Holdings Inc. said it is “very much on track” to achieve its net income and sales targets for 2014 following double-digit growth in midyear earnings driven by higher housing sales.
At the company’s annual stockholders’ meeting, 8990 Holdings president Januario Jesus Gregorio Atencio III said net income in the first half grew 20 percent to P1.8 billion from P1.5 billion in the same period last year, putting the company on track to meet the full-year net income target of P3.2 billion.
Revenue also went up by 32 percent to P4.1 billion from P3.1 billion a year earlier and the figure is in line with the full-year sales projection of P8 billion.
“We’re basically on track with our targets,” Atencio said.
Atencio said net operating income amounted to P1.6 billion, and 97 percent of this came from sales of 3,812 housing units in the first half.
The company said it acquired 85.3 hectares of landbank in the first six months of the year, adding to the existing 250 hectares as of end-2013, raising its landbank to a total of 335 hectares.
Housing units to be developed increased to 89,850 units from 64,405 units.
“Our goal in the next few months is to increase our landbank to 500 hectares, and we’re presently looking at 121 hectares in Davao, 38 hectares in Cebu, 35 hectares in Angeles, 140 hectares in Cavite, 93 hectares in Bulacan and 1.4 hectares along Alabang-Zapote Road in Las Pinas,” Atencio said.
He said 8990 Holdings is looking at building more residential projects to help reduce the 3.5 million housing backlog as of December 2013.
The company has completed a total of 5,603 housing units in North and South Luzon, Cebu, Iloilo and Davao as of end-2013.
At the annual stockholders’ meeting, the company’s board of directors and shareholders agreed to increase the number of board directors from seven to 13 to better represent 8990 Holdings amid increased investment pledges to the company in the wake of its follow-on offering in May.
Over a five-year perioid, 8990 Holdings is set to complete 18 projects that are expected to generate total revenue of P66 billion.