SMDC net income up 38% to P2.7B in H1

An artist’s perspective of the Green Residences, one of 16 projects of the SM Development Corp. that are under construction. The SMDC grew its 2012 first-semester consolidated net income by 38 percent year on year to P2.7 billion on the back of a strong expansion in real estate revenues.

MANILA, Philippines—Residential property developer SM Development Corp. grew its first-semester consolidated net income by 38 percent year on year to P2.7 billion on the back of a strong expansion in real estate revenues.

Six-month revenues from real estate rose by 73.6 percent to P11.9 billion while net income from real estate, not counting other income, went up by 31.8 percent to P2.51 billion over the same period.

In a disclosure to the Philippine Stock Exchange, SMDC’s first-half home sales jumped by 85 percent to P19.8 billion year on year. Correspondingly, the number of units sold rose sharply by 72 percent to 8,007 from only 4,655 units during same period last year.

“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience. SMDC’s residential condominiums are being designed and developed to cater to the Filipino’s growing need for privacy, sophistication and greater access to retail and home-related services which offer greater convenience and time for families to live a more balanced life,” SMDC chief executive officer Henry Sy Jr. said in a press statement.

Case flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 32.6 percent year on year to P2.97 billion, translating to an Ebitda margin of 25 percent.

Most of the units sold by SMDC in the first half were from Shell Residences located at Mall of Asia Complex, Green Residences along Taft Avenue near De La Salle University, Jazz Residences in Makati, Light Residences on EDSA near Boni Avenue., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA.

At present, SMDC has a total of 16 projects under construction. It plans to break ground for five more projects in the second half of the year.