SMDC income surges to record P1 billion

MANILA, Philippines - SM Development Corp. (SMDC), a property firm owned by the family of retail tycoon Henry Sy, said its net earnings for the first half hit a record P1 billion, a 100-fold increase from the P10.3 million net profit the previous year-period, on the back of dramatically higher sales.

In a disclosure to the Philippine Stock Exchange, SMDC said consolidated revenues grew 85 percent to P2.6 billion while its real estate income reached P776 million or more than doubled the year earlier figure.

SMDC said revenues from real estate operations stood at P2.3 billion, up 31 percent from P1.8 billion. Residential units sold went up 32 percent to 1,771 valued at P4.1 billion.

 “We are very pleased with the performance of SMDC for the first six months of 2009. While we came from a low-income base last year due to our equity positions that were affected by the financial meltdown, the dramatic increase in net income was also achieved by exerting greater effort in sustaining the growth in residential real estate operations. We expect a robust growth for the rest of the year as we are preparing to launch more projects,” said SMDC president Roger R. Cabuñag.

He said SMDC expects to sustain its strong performance for the remainder of the year as it launches new projects, namely Princeton Residences, Sun Residences (near Welcome Rotonda in Quezon City); Mars Residences along Jupiter St. in Makati City; Jazz Residences in Mandaluyong City; Tree Residences along Felix Avenue in Cainta, Rizal; and Wind Residences in Tagaytay City.

Princeton Residences, a 37-story condominium building located along Gilmore St., Quezon City, is estimated to cost P1.5 billion. Construction will start this year and is slated for completion in 2012. A total of 1,088 units will be offered to the public.

Tree Residences, on the other hand, will involve the development of eight 12-storey mid-rise buildings, costing around P2 billion. The project, offering a total of 2,420 units, will rise on a 5.4-hectare property on Imelda Ave. in Cainta, Rizal and is targeted for completion in 2012.

Wind Residences, meanwhile, is expected to cost P4.3 billion and will make available a total of 2,300 units. Completion of the project is set for 2015.

Ongoing projects include Chateau Elysee, Berkeley Residences in Katipunan Road across Miriam College and Grass Residences beside SM North EDSA.

Chateau Elysee is a six-cluster, mid-rise condominium project in Parañaque City which is now on its fifth cluster and is 58 percent complete, while Berkeley Residences is 40 percent complete.

Grass Residences, on the other hand, is 39 percent complete with Tower 1.

SMDC has set aside P7.2 billion for its capital expenditures this year or 40 percent higher than the allotted budget in 2008. Around 80 percent of the total budget will be sourced from internally-generated cash while the remaining 20 percent will come from borrowings.