SMDC earnings up 38% in H1

MANILA, Philippines - Property firm SM Development Corp. (SMDC) said its first half net earnings rose 38 percent to P2.7 billion on brisk home sales amid a low interest rate environment.

In a disclosure to the Philippine Stock Exchange yesterday, SMDC, the real estate development arm of the SM Group, said revenues from real estate jumped 73.6 percent to P11.9 billion while EBITDA (earnings before interest, taxes, depreciation and amortization grew 32.6 percent to P2.97 billion.

The company sold a total 8,007 residential units during the first semester, 72 percent higher than the 4,655 units disposed off in the same period a year ago. Most of the units came from Shell Residences located at the Mall of Asia Complex, Green Residences along Taft Ave. near De La Salle University, Jazz Residences in Makati, Light Residences along EDSA near Boni Ave., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA

“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 vice-chairman and chief executive offer Henry T. Sy Jr. said. 

The company intends to launch five more projects in the second half of the year, equivalent to around 73,000 new residential units, a sharp increase from the 9,000 units developed in 2011. The company stands to generate about P37 billion from the sale of these units.

SMDC has set a capital spending of P20.7 billion this year, significantly higher than the P13 billion spent in 2011. Bulk of the programmed capital budget will go to the construction of ongoing and new projects while about P4 billion has been earmarked for landbanking.