Housing developer 8990 Holdings, Inc. reported that its housing loan takeouts or proceeds from the Home Development Mutual Fund (HDMF or the Pag-ibig Fund) almost tripled last year from P5.96 billion in 2022.

During the firm’s annual stockholders’ meeting on July 29, 2024, 8990 President and CEO Anthony Vincent Sotto said their move to promote the Pag-ibig Fund among homebuyers meant that the company’s liquidity improved even as interest rates continued to rise.

“But this isn't merely a financial triumph. It's a testament to our commitment to making home ownership a reality for more people. 

“Consider this: 126 percent more individuals now own homes. The number of homes we've helped make affordable and taken out by Pag-ibig has soared from 4,299 units to an extraordinary 9,736 units in just one year,” Sotto shared.

For the whole of 2023, 8990 delivered 12,679 affordable homes to our fellow Filipinos — an increase of 13.8 percent from the previous year’s 11,145 units. 

The National Capital Region (NCR) contributed a significant 56 percent of the total value. Following NCR, North Luzon accounted for 13 percent, while both Cebu/Ormoc and Iloilo/Bacolod each made up 10 percent. Meanwhile, Davao contributed 9 percent while GenSan contributed less than 1 percent. 

Of the 12,679 units delivered, NCR has the largest share, representing 34 percent. Iloilo and Bacolod combined brought in 23 percent, followed by North Luzon and Davao at 16 percent each and Cebu/Ormoc at 9 perent. GenSan's contribution remained at less than 1 percent.

As to product type, 8990’s High-Rise Buildings (HRBs) contributed 61 percent of the total value of units delivered. Mass Housing made up 32 percent of the total, while Medium-Rise Buildings (MRBs) stood at 7 percent. Lot sales constituted less than 1 percent.

On a per unit basis, Mass Housing remains the dominant product type, contributing 55 percent of the total, followed by HRBs at 38 percent, and MRBs at 7 percent.

Gross Revenues expanded by 5 percent in 2023 to P22.7 billion from P21.6 billion the previous year, mainly due to the strong market reception to their affordable housing projects in Metro Manila.

However, 8990’s net income declined by 10 percent to P6.9 billion from the previous year’s P7.7 billion, as the company’s Gross Margins tightened to 44 percent from 50 percent. 

The company registered a higher volume of resale units during the year, and declared that the “strategic decision to prioritize the sale of resale units was driven by the goal of substantially reducing cash outlays in comparison to fresh units.”

Net margins also decreased from 35 percent in 2022 to 30 percent in 2023, primarily due to increased finance costs and higher income tax expenses, according to Sotto. He attributed the surge in finance costs due to rising interest rates. 

Meanwhile, as 8990’s projects in Manila and Ortigas were not registered with the Board of Investments (BOI), income tax expenses also increased.