SMDC nets P3.1B in 9 months, up 51%
MANILA, Philippines — Tycoon Henry Sy-led SM Development Corp. grew its nine-month net profit by 51 percent year-on-year to P3.1 billion on higher revenues booked from real estate operations and some non-recurring earnings from disposal of securities in the previous year.
Realized revenues from real estate operations surged by 86 percent to P11.3 billion from the same period last year, the company disclosed on Wednesday.
Net income from the core business of real estate operations expanded to P3 billion in the January to September period, or by a hefty 91 percent from a year ago.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the period amounted to P3.7 billion, for an EBITDA margin of 32 percent.
Strong sales take up of the company’s residential condominium projects coupled with expected construction completion rates contributed significantly to SMDC’s positive results, the company said.
SMDC vice chairman and CEO Henry SyJr. said the nine-month results were a fitting testament to the underlying robust demand for the company’s products due to its strong value proposition to the buyers.
“Our confidence level is very high that the affordable five-star homes in prime location concept, and the excellent investment opportunity being offered to earn better returns are strongly compelling. SMDC shall therefore continue pursuing this objective with even more vigor and enthusiasm as we expand and fortify our position,” he said.
The company has kept a low gearing or debt to equity ratio of 23 percent.
From January to September of this year, SMDC sold about 7,900 residential units worth about P17.6 billion.
Recently, SMDC again garnered the top spot in Metro Manila’s residential condominium market, having sold the most number of residential condominium units and the biggest sales value during the first semester, according to a report by property consultant Colliers International Philippines.
As of end-September, SMDC has 16 residential projects in the market.
Fully completed projects are Chateau Elysee, Mezza Residences, Lindenwood Residences, Berkeley Residences, Grass Residences Tower 1, Field Residences Tower 1, 2 and 8 and Sea Residences Phase 1. The company’s on-going projects are Grass Residences Towers 2 and 3, Sea Residences Phases 2 and 3, Field Residences Tower 3 and 7, Princeton Residences, Light Residences, Jazz Residences, Sun Residences, Wind Residences, Blue Residences, and M Place@South Triangle.
Launched earlier this year were M Place@Ortigas, and Mezza 2 Residences.
For the rest of 2011, two more new residential condominium projects will be launched — Green Residences beside La Salle Taft Avenue in Manila and Shell Residences in MOA Complex, Pasay City.
In 2012, SMDC is targeting to launch at least five more projects.
