Posted on November 07, 2012 09:54:22 PM [ BusinessWorld Online ]
By Franz J. G. de la Fuente, Reporter
CONDOMINIUM developer SM Development Corp. (SMDC) boosted its nine-month net income by a mere 5.7% to P3.3 billion this year versus year-ago levels.
This figure is much slower than the 51% profit growth that the company posted last year versus 2010 levels, even as it booked higher year-on-year real estate revenues.
The Sy-led company posted a January-to-September consolidated net income of P3.3 billion this year, up 5.7% from P3.1 billion in the same period last year, SMDC’s disclosure to the Philippine Stock Exchange (PSE) showed yesterday.
Its latest financial statement was not immediately made available.
Last year, SMDC realized a 51% uptick in its nine-month consolidated net income from P2.1 billion in the same period in 2010, an earlier disclosure showed.
This year, revenues from real estate sales amounted to P16.1 billion as of September, 42.48% higher than P11.3 billion reported during the same period last year.
The firm said that a majority of its sales this year were derived from units sold at the Shell Residences in Pasay; Green Residences in Manila; Jazz Residences in Makati City; Light Residences in Mandaluyong City; Sun Residences in Quezon City; and Wind Residences in Tagaytay, the disclosure read.
“[SMDC’s] projects have been very well-received by the market because of their quality, affordability, location, and also because they offer amenities that until recently been unavailable to mid-range buyers, including swimming pools, function rooms, and well-appointed, hotel-like lobbies,” the company claimed.
SMDC was first incorporated in 1974 as closed-end investment firm Ayala Fund, Inc. before it was taken over by the SM Group in 1986, according to information posted on the PSE Web site.
The company adopted its current designation in 1996.
For 2012, the developer said last April that it was looking to spend around P30 billion in capital expenditures and launch five residential condominiums in Metro Manila (called Joy, Breeze, Grace, and Rich Residences; and Grass Residences Phase 2, respectively) that will have an estimated total market value of P37 billion.
These new projects will be added to the company’s current portfolio of 15 SM Residences brand and two projects under the M Place brand.
Expansions are also set for SMDC’s Wind, Jazz, and Field Residences, as well as M Place @ South Triangle.
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, tapping into the growing population of the world’s second largest economy.
SMDC is also looking at the possibility of developing projects near malls already established by its affiliate SM Prime Holdings, Inc.
SMDC’s shares gained 0.32% or two centavos to P6.30 after the bourse closed yesterday from P6.28 last Tuesday.