By Zinnia B. dela Peña (The Philippine Star) Updated October 21, 2009 12:00 AM
MANILA, Philippines - Buoyed by robust sales and higher completion rates of its various projects, SM Development Corp. (SMDC) posted a net income of P1.4 billion in the first nine months of the year, or 60.88 times the previous level of P23 million in 2008.
In a financial report filed with the Philippine Stock Exchange, SMDC said consolidated revenues surged 78 percent to P4.1 billion during the period, mainly due to the recovery in the financial markets.
Net income from operations amounted to P1.1 billion, up 83 percent from P607 million a year earlier. Realized revenues from real estate sales rose 30 percent to P3.7 billion, resulting in an expanded consolidated net income margin of 37 percent.
“We are strongly encouraged by the healthy growth in SMDC’s profits during the first nine months of this year. Our efforts to strengthen our real estate sales operations and our keen monitoring of construction costs are paying off through higher margins and better operational efficiencies. With these positive developments, we remain bullish in our business operations this year,” said SMDC president Roger Cabunag.
To date, SMDC has seven on-going projects — the fifth cluster of Chateau Elysee (a six-cluster mid-rise condominium project in Parañaque City) which is 88 percent complete; Berkeley Residences in Katipunan Road, across Miriam College and Grass Residences beside SM City North EDSA (with the first tower 47 percent complete); Sea Residences near the Mall of Asia Complex in Pasay City and Field Residences in Sucat, Parañaque.
Other projects slated to launch this year are Princeton Residences (a 37-storey condominium building located along Gilmore St., Quezon City); Sun Residences beside Welcome Rotonda in Quezon City; Jazz Residences along Jupiter St.; Light Residences in Mandaluyong
City and Wind Residences in Tagaytay City.
SMDC has earmarked P7.2 billion for capital expenditures this year or 40 percent higher than the 2008 budget. Around 80 percent of the capital budget will be sourced from internally generated funds while the remaining 20 percent will come from borrowings.
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