SMDC profit rises 5.7% to P3.3B in 9 mos

MANILA, Philippines - SM Development Corp. (SMDC) said its earnings in the nine months to September rose 5.7 percent to P3.3 billion from a year ago.

The property arm of mall and banking tycoon Henry Sy recorded a 42.7-percent uptick in revenues from real estate sales at P16.1 billion, from P11.3 billion in the same period last year.

“SMDC’s projects have been very well received by the market because of their quality, affordability, location,” the company said in a statement.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) in the nine-month period was at P3.7 billion, resulting in an EBITDA margin of 23 percent.

Return on equity was maintained at 12 percent, SMDC said.

Majority of the units sold were from Shell Residences in the Mall of Asia Complex, Green Residences along Taft Ave. Jazz Residences in Makati, Light Residences along EDSA, Sun Residences near the Welcome Rotonda in Quezon City, and Wind Residences in Tagaytay, SMDC said.

The company scheduled the launch of five projects in the second half, equivalent to around 73,000 new residential units.

It represents 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 land banking.