SM Development reports P4.9-B profit in 2012

MANILA, Philippines—Residential property developer SM Development Corp. increased its net profit last year by 17.5 percent to P4.9 billion as real estate revenues expanded at a double-digit pace, the company announced Wednesday.

Net income from real estate sales amounted to P4.7 billion, up by 16.4 percent from a year ago. Net margin stood at 22.7 percent.

Revenues from real estate sales rose by 33.3 percent year-on-year to P21.6 billion. Cash flow based on earnings, interest, taxes, depreciation and amortization (EBITDA) amounted to P5.6 billion, for an EBITDA margin of 26 percent.

Return on equity inched up to 13 percent from 12 percent in 2011.

SMDC’s asset base expanded 47.3 percent year on year to P79.4 billion. As of end-2012, SMDC’s net debt to equity ratio was at a ratio of 29 percent net debt to 71 percent equity.

The number of units sold during the year increased by 7.6 percent to 12,614 units from 11,726 units in 2011, while reservation sales for 2012 rose by 20.8 percent to P31.7 billion from a year ago.

Most of the units sold during the year were from Shell Residences in the Mall of Asia Complex, Green Residences on Taft Avenue, Jazz Residences in Makati, Light Residences on EDSA, Sun Residences in Quezon City, Grass Residences, also in Quezon City, and Wind Residences in Tagaytay City.

As of end-December 2012, SMDC had 15 ongoing residential condominium projects all over Metro Manila, not counting Wind Residences in Tagaytay. The projects include Grace Residences in Taguig, and Breeze Residences in Pasay, which were launched in the latter part of 2012.

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