SM Development Corp. reports P4 B profit in 2011

MANILA, Philippines—SM Development Corp. grew its net profit last year by 38 percent to P4.18 billion on a double-digit surge in revenues from residential development projects.

In a disclosure to the Philippine Stock Exchange on Wednesday, SMDC reported that consolidated revenues amounted to P16.99 billion, higher by 70 percent year-on-year. Cash flow based on earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to P4.95 billion, for an EBITDA margin of 30 percent.

Revenues from real estate operations during the year soared by 79 percent to P16.18 billion from a year ago, resulting in a net profit from this segment amounting to P4.04 billion which was up by 58 percent from a year ago.

“SMDC’s strong performance last year confirms the sustainability of its past successes. The company has already become one of the preferred brands in condominium living, thus attaining the necessary momentum to continue delivering positive results,” SMDC vice chairman and chief executive officer Henry Sy Jr. said.

Sy added that SMDC was committed to responsible governance, sound financial management and continued innovation to ensure long-term sustainability.

SMDC reported strong market acceptance of SM Residences and M Place housing units which the company attributed to deeper confidence in the company’s proven ability to complete its projects. The company said its “consistent offerings of high-quality and well-designed residential units built by an experienced team composed of the country’s top contractors, engineers, architects, and interior designers also allowed SMDC to gain further traction and brand recognition.”

The company’s net earnings over the past five-years have grown by an average of 44.6 percent.

For the whole of 2011, SMDC pre-sold 11,726 residential condominium units worth about P26.27 billion. This level was 14 percent higher than the number of units pre-sold in the previous year and likewise exceeded the company’s target for the year by 11 percent.

Total assets for the period reached P54.77 billion, 25 percent higher than a year ago.

In a recent study done by the Advisory and Research Services of Colliers International Philippines, SMDC captured the largest market share of 24 percent in Metro Manila. SMDC has consistently been No. 1 in Colliers’ property surveys since July 2009.

SMDC currently has 15 residential projects under its SM Residences brand and two projects under the M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.