Thursday, 22 October 2009

SM firm says net income up 5,900%

Jenniffer B. Austria
Manila Standard

SM Development Corp., the property firm of retail tycoon Henry Sy, yesterday said its nine-month consolidated net income surged 5,900 percent to P1.4 billion from just P23 million in the same period last year on strong sales of the company’s residential condominium projects.

SM Development, in a disclosure to the stock exchange, said consolidated revenues grew 78 percent to P4.1 billion from a year-ago level.

Net income from real estate operations jumped 83 percent to P1.1 billion from P607 million in the same period last year as realized revenues from real estate operations went up by 30 percent to P3.7 billion from a year-ago level of P2.9 billion.

During the period, the company’s reservation sales doubled to 3,708 units.

Aside from strong real estate sales, the recovery of the financial markets also contributed to the company’s positive financial performance.

“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 SM Development president Roger Cabuñag.

The company has several ongoing projects, including Chateau Elysee, a six-cluster mid-rise condominium project in Parañaque City, Berkeley Residences in Katipunan Road and Grass Residences beside SM City North Edsa.

New projects include Sea Residences near the Mall of Asia Complex in Pasay City, Field Residences in Sucat, Parañaque City, Lindenwood Residences, which is a residential subdivision in Muntinlupa City and Mezza Residences across SM City Sta. Mesa.

Other projects scheduled for launching this year are Princeton Residences, beside Gilmore LRT-2 Station along Aurora Boulevard in Quezon City; Sun Residences, beside Welcome Rotonda in Quezon City; Jazz Residences along Jupiter Street in Makati City; Light Residences in Mandaluyong City and Wind Residences in Tagaytay City.

The company earlier announced plans to raise up to P5 billion through a stock rights offering early next year. The proceeds will be used to carry out the company’s growth initiatives, including land banking and other general corporate purposes.

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