DMCI Homes eyes P13.9B worth of project completions

DMCI PROJECT DEVELOPERS, Inc. (DMCI Homes), the residential arm of listed DMCI Holdings, Inc., is targeting to complete 10 projects before the year ends.

In a disclosure by its parent to the exchange on Tuesday, DMCI Homes said it is expecting to finish P13.9 billion worth of projects in the remaining period of 2020, comprising 4,088 residential units spread across 10 buildings.

These projects belong to DMCI Homes’ Mulberry Place, Lumiere Residences, Calathea Place, Sheridan Towers, Alea Residences, and Oak Harbor Residences.

Of the combined 4,088 residential units, some 3,500 have already been sold out.

“The pandemic really battered our productivity. Our projects got delayed by one to three months because of the 76-day work stoppage in the first semester,” DMCI Homes President Alfredo R. Austria said in the statement.

“Since we follow the percentage-of-completion method for revenue recognition, our booked revenues contracted on lower construction accomplishments,” he added.

In the nine months through September, DMCI Homes contributed a net income of P472 million to its parent DMCI Holdings, down about 74% from P1.8 billion in the same period a year ago.

Its revenues slid 36% to P9.5 billion due to delayed project completions following restrictions on construction activity.

To catch up, the company is implementing “modularization,” which is a method that allows building components to be pre-made then assembled for construction.

It is also providing onsite barracks for some 4,941 construction workers to reduce tardiness and the likelihood of absences while transportation facilities are limited.

As of September, DMCI Holdings booked an attributable net income of P3.91 billion, slumping 58% from the same nine-month period in 2019. Aside from its residential business, the company also has interests in mining, construction, water and power.

Shares in DMCI Holdings closed at P5.41 each on Tuesday, inching up one centavo or 0.19% from the last session. — Denise A. Valdez





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