SMDC net profit jumped 54% in first half to P1.93B

Tycoon Henry Sy-led SM Development Corp. expanded its six-month net profit by 54 percent to P1.93 billion from a year ago on strong sales and construction progress at existing projects.

Consolidated revenue in the first semester jumped 65 percent to P7.14 billion year on year. Revenue from real-estate operations surged 67 percent to P6.86 billion.

SMDC said this performance was on account of its strong sales record and the increased momentum in the construction of various projects in Metro Manila and Tagaytay City.

“The highly favorable results of SMDC reflect the success of the business model that we have developed within the group. We have set a course that serves the immediate needs of a growing market that was long unnoticed and unserved by the industry,” SMDC vice chairman and chief executive officer Henry Sy Jr. said in a statement.

“We will continue to improve on the foundation we have so far created for our market through constant innovation and better designs and lifestyles, yet still affordable. While we are at this, we will remain alert for opportunities that may arise in the coming years, which would optimize the business synergies between SMDC and the SM group,” Sy added.

In the first half, SMDC presold 4,936 residential units worth approximately P10.7 billion.

As part of marketing innovation, SMDC launched a major showroom near the Mall of Asia in Pasay City in the first semester and likewise sponsored the hit movie “Who’s That Girl?” which showcased some of its projects.

SMDC also maintained a low debt-to-equity ratio of only 2 percent as of end-June. Last year, SMDC raised a total of P26.4 billion from three separate funding initiatives, which included two stock rights issues and a local bond deal. The proceeds are being used for both landbanking and project development.

As of end-June, SMDC’s total assets stood at P52.22 billion, up 44 percent from a year ago. It had cash holdings of about P9.22 billion.

SMDC has four fully completed projects—Chateau Elysee, Mezza Residences, Lindenwood Residences and Berkeley Residences.

Its 10 ongoing projects are Grass Residences, Sea Residences, Field Residences, Princeton Residences, Light Residences, Jazz Residences, Sun Residences, Wind Residences, Blue Residences and M Place South Triangle.

The company plans to launch six new projects this year in the cities of Pasig, Quezon, Pasay, Manila and Parañaque.