8990 HOLDINGS, Inc. expects to hit a top line of P24 billion this year, its top official said, citing the listed developer’s property portfolio as the main driver.
Photo Insert: Revenue for the year will be mainly driven by the company’s properties in Metro Manila, which would mainly be contributed by its Ortigas and Manila projects.
“We are hopeful that we can really target P24 billion [in revenues] for the rest of the year,” said 8990 President and Chief Executive Officer Anthony Vincent Sotto in a media briefing.
Sotto added that revenue for the year will be mainly driven by the company’s properties in Metro Manila, which would mainly be contributed by its Ortigas and Manila projects.
Furthermore, he said that the company is planning to expand to other parts of the country, by developing smaller offerings in the provinces.
“We are now looking at going to provinces that are ripe already for development, but in smaller areas. Before, we were targeting more than 20 hectares in a certain area," adding that the company is "Targeting to develop five hectares of horizontal properties as it expands to Tacloban City, the provinces of Samar and Leyte in the Visayas, and other parts of Luzon and Mindanao."
Meanwhile, Mr. Sotto said in a statement that the company has 16 ongoing projects which are expected to contribute about P155 billion in revenues in the next seven to eight years. “As of the end of the quarter, 8990’s land holdings now stand at 709.35 hectares with the addition of properties acquired in Cebu and Leyte,” he added.
The company said that its land bank in Luzon is expected to generate P98 billion on its top line, while Visayas and Mindanao are expected to contribute P67 billion and P6 billion, respectively.
"We found out that it was better and faster to develop smaller areas,” he said.
During the first quarter, the company reported a 2.07% decline in attributable net income to P1.89 billion from P1.93 billion the previous year because of higher material costs.