DMCI PROJECT Owners, Inc. (DMCI Homes), the residential division of DMCI Holdings, Inc., plans to finish 10 developments before the year ends.
In its parent’s announcement to the exchange on Tuesday, DMCI Homes announced that it plans P13.9 billion worth of projects to be built in the remaining 2020 period, consisting of 4,088 residential units spread over 10 buildings.
These developments are part of DMCI Homes’ Mulberry Place, Lumiere Residences, Calathea Place, Sheridan Towers, Alea Residences and Oak Harbor Residences.
Of the 4,088 residential homes combined, about 3,500 have already been sold out.
“The pandemic has already destroyed our competitiveness. Our programs were postponed by one to three months owing to a 76-day work stoppage in the first semester,” said DMCI Homes President Alfredo R. Austria in the letter.
“Because we adopt the percentage-of-completion approach for acknowledgment of revenue, our booked revenues are contracted for lower construction results,” he said.
In the nine months to September, DMCI Homes contributed a net income of P472 million to its parent company DMCI Holdings, down around 74% from P1.8 billion in the same timeframe a year earlier.
Its sales were down 36% to P9.5 billion due to delayed completion of the project following constraints on building activities.
In order to keep up, the organization is introducing “modularization” which is a process that requires building materials to be pre-made and installed for construction.
It also offers on-site barracks for some 4,941 construction staff to minimize delays and the possibility of absences as transport facilities are minimal.
As of September, DMCI Holdings had an attributable net profits of P3.91 billion, down 58% from the same nine-month span in 2019. Apart from its residential sector, the group also has an interest in mining, manufacturing, water and electricity.