Posted on August 01, 2012 10:06:40 PM
[ BusinessWorld Online ]
CONDOMINIUM builder SM Development
Corp. (SMDC) grew its first-half net income by over a third versus year-ago
levels, buoyed by a sharp increase in real estate revenues, a disclosure to the
Philippine Stock Exchange showed yesterday.
The Sy-led firm realized a
January-to-June consolidated net income of P2.70 billion, up 38.46% from P1.96
billion last year, while revenues from real estate rose by 73.46% to P11.9
billion, year on year.
“We are highly gratified by the warm
response that the market continues to give to SMDC’s products,” said Henry T.
Sy, Jr., SM Development vice-chairman and chief executive.
The performance, however, is slower
than the 48.49% growth the company notched last year.
The firm’s latest financial statement
was not immediately made available yesterday.
A total of 8,007 condominium units
were reportedly sold in the first half, mostly from projects built in Metro
Manila, SM Development said.
This is 72% higher than the 4,655
units sold in the same period in 2011.
“[SM Development’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,” Mr. Sy added.
For 2012, the developer is looking to
spend around P30 billion in capital expenditures and launch five residential
condominiums in Metro Manila that will have an estimated total market value of
P37 billion, adding to its current portfolio of 15 SM Residences projects and
two projects under the M Place brand.
It is also firming up its overseas
expansion plans, with work on a number of high-rise structures in China seen to
start as early as this year, earlier reports stated.
SM Development had said it was keen on
tapping China’s growing population as well as taking advantage of properties
near malls already established by its affiliate, SM Prime Holdings, Inc.
SM Development’s robust performance in
the first half mirrors the positive picture analysts have painted for the
condominium market.
CB Richard Ellis (CBRE) Philippines,
Inc. had said a little over 50% of Filipinos bought condominium units in the
first quarter, surpassing rentals, which used to be the preferred choice among
Filipinos.
Conventional property drivers such as
OFW (overseas Filipino workers) remittances, a low inflation rate, and low bank
lending rates are also fueling the optimism in the residential segment, CBRE
Philippines noted.
Further, the property consultant said
that the condominium market was not experiencing a glut as thought by some
quarters, given that supply levels are being adequately matched by demand.
SM Development shares rose sharply by
2.26% to P6.34 from P6.20 at its previous close.
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