MASS housing developer 8990 Holdings, Inc. is looking at generating P205 billion in sales in the medium term from projects it may launch using its existing land bank.
In a briefing on Monday, 8990 Acting President and Chief Operating Officer Alexander Ace Sotto said the company keeps a land bank of 657.12 hectares, spread across Luzon (148.04 hectares), Visayas (366.96 hectares) and Mindanao (142.12 hectares).
“In the next seven to 10 years, we expect to unlock an estimated P205 billion in potential sales once all of these properties will become active soon and taken out,” he said.
8990 has 20 projects ongoing construction, where two located in Cebu and Iloilo were launched earlier this year. Another one in Cubao is expected to be launched before the year ends or early next year.
Due to the coronavirus pandemic, the company is cutting on non-essential expenses, and has reduced its capital expenditure budget to P5-6 billion from P8-10 billion initially.
“We will focus on what is needed, and this means cutting down on non-essential expenses. This includes discretionary spending cuts, inventory optimization, negotiating for better supplier payment terms, and more efficient spending,” Mr. Sotto said.
8990 posted a 47% profit decline to P1.48 billion during the first semester, as the coronavirus-related lockdown hampered its operations during the period. It reported revenues of P4.91 billion, down 30% from the same period last year.
But since quarantine restrictions have eased, it has been recording a better performance than pre-pandemic, as more people prefer to buy living spaces of their own to prevent contracting the coronavirus.
“[Sales are] even better. [But] we’re not surprised… Because of the pandemic, there’s a clamor for families to transfer to safer communities,” 8990 Chief Finance Officer Roan B. Torregoza said.
The company targets that by the yearend, its revenues and income would match last year’s, which stood at P15.28 billion and P5.58 billion, respectively.
Shares in 8990 at the stock exchange closed at P7.45 each on Monday, up 11 centavos or 1.50% from the last session. — Denise A. Valdez