Property

8990 Q1 earnings rise 12%

Mass housing developer 8990 Holdings reported a net income of P1.32 billion in the first quarter, up 12% from the previous year on higher sales.

Revenue climbed 15% to P3.46 billion as sales in the National Capital Region, Bacolod and Davao went up. Sales reservation jumped 48% to 3,457 units.

Gross Income likewise increased to P1.9 billion from P1,68 billion.

Performing Accounts Ratio (PAR) for its in-house CTS accounts, an indicator of collection efficiency, remained at 94% with updated accounts performing 77% of total in-house accounts while only 23% were in arrears of 1 month or more.

8990 acting president and COO Alexander Ace Sotto, said the company expects sales to soften in the second quarter given the coronavirus-induced lockdowns imposed by the government to contain the virus.

Sotto likewise cited the Bayanihan law which allowed buyers to pay over a six-month period all monthly amortizations due during the period without interest or penalties.

He said the “implementation of office and construction work closures, travel bans, self-quarantine measures and social distancing during the first half of the second quarter has caused a disruption in the company’s normal way of doing business.”

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