8990 expects P5.4-b income
Property developer 8990 Holdings Inc. said Tuesday it expects net income to jump 41.7 percent in 2017 to P5.4 billion from P3.81 billion in 2016, as it plans to launch 11 new projects this year.
Jesus Gregorio Atencio, chief executive of 8990 Holdings, said in a news briefing revenues were estimated to hit between P10 billion and P13.5 billion this year. He said 66 percent of the revenues would come from 11 ongoing projects and 34 percent would be generated from 11 new projects.
“So if 2017 continues to be an unlucky year and [we] don’t get permits, I can still get P10 billion in sales which is 7 percent increase in sales from 2016 level,” Atencio said.
The company said of the 11 new projects to be launched in this year, eight were originally slated for launching in 2016 but were delayed because of stringent permit and licensing environment from various local government units.
The eight delayed projects covered 2,706 units worth P2.4 billion. “We wish to emphasize that these revenues are not lost, but merely delayed,” Atencio said.
Atencio said the company’s thrust for 2017 was to generate cash to pay down short-term and medium-term debt.
8990 Holdings plans to sell P3 billion worth of receivables and increase loan take out from Home Development Mutual to P6 billion this year.
The mass housing developer also plans to raise P3 billion through securitization and P5 billion from issuance of preferred shares.
Atencio said the 11 new projects this year will offer a total of 60,765 units located in Bulacan, Iloilo, Cebu, Bacolod and Davao.
“We expect to launch three projects in the first quarter followed by five in the second, and closing the third with three more,” he said.