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SMDC profits hit P3B

[ ] February 23, 2012

SM Development Corp. (SMDC) said profit last year reached P4.18 billion, up 38 percent from P3.02 billion in 2010.

"Of the total, net profit from real estate operations amounted to P4.04 billion, for a robust 58 percent growth from P2.56 billion posted during the same period in 2010," the company said.

Before becoming a property developer, SMDC was a portfolio investment arm of the SM Group of companies.

Henry Sy Jr., SM Development chief executive officer, attributed the company’s good performance on the "sustainability" of its past "successes."

"The company has already become one of the preferred brands in condominium living, thus attaining the necessary momentum to continue delivering positive results. We are also heartened by the firm support of SMDC’s shareholders and clients. Moving forward, SMDC’s commitment lies in responsible governance, sound financial management, and continued innovation to ensure the long-term sustainability of your company," he said.

Consolidated revenues reached P16.99 billion, 70 percent higher year on year. Earnings before interest, tax, depreciation and amortization (Ebitda) reached P4.95 billion, for an Ebitda margin of 30 percent.

"Net earnings over the past 5 years have grown by an average of 44.6 percent," the company said.

SM Development said revenues from real estate operations grew 79 percent to P16.18 billion from P9.12 billion on the back of project launches.

"The market continues to show strong acceptance of SM Residences and M Place products, backed by a deeper confidence in the company’s proven ability to complete its projects, thereby fuelling to a large extent SMDC’s notable 2011 results. The consistent offerings of high-quality and well-designed residential units built by an experienced team composed of the country’s top contractors, engineers, architects, and interior designers also allowed SMDC to gain further traction and brand recognition," it said.

The company pre-sold 11,726 residential condominium units worth about P26.27 billion last year.

"Compared to the same period in 2010, the number of units pre-sold increased by 14 percent and exceeded the company’s sales target of P23.57 billion by 11 percent," it said.

SMDC has 15 residential projects under its SM Residences brand and two projects under the M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.

SMDC closed 2011 with a total asset of P54.77 billion, 25 percent higher than the P43.70 billion in 2010. Total liabilities stood at P19.36 billion.

Stockholders stood at P35.41 billion, 38 percent higher than the P25.66 billion the previous year.

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