Vol. XXII, No. 151 [ BusinessWorld Online ]
Wednesday, March 4, 2009 | MANILA, PHILIPPINES
Net profits of Sy-led SM Development Corp. (SMDC) slid more than 23 times to P56 million last year even as earnings from real estate operations more than doubled.
In a statement, the listed company traced the decline to unrealized mark-to-market losses from equity investments from its previous business as an asset management company. In 2007, net earnings stood at P1.3 billion.
SMDC said profits from real estate surged to P1.1 billion from P513 million a year earlier due to strong sales of its Grass and Berkeley Residences in Quezon City.
It also said construction at its Mezza Residences and Chateau Ely-see in Sta. Mesa and Parañaque was moving ahead of schedule.
Revenues from real estate operations jumped by over half to P3.1 billion due to strong sales of its Grass and Berkeley Residences projects.
SMDC presold 2,622 residential units worth P5.1 billion last year, an increase of more than a quarter.
The company expressed optimism about its prospects this year. "Notwithstanding the challenging operating environment we are in, we foresee our residential business to be highly competitive in the market," it said.
SMDC said it would pursue pre-selling activities, while monitoring expenses.
The property developer has five ongoing projects in the cities of Parañaque, Manila, Quezon and Muntinlupa that are in varying stages of development. — Don Gil K. Carreon
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