SM Development income nearly doubles to P578M in January-September

SM Development Corp. (SMDC), the listed property investment arm of the SM Group of Companies of retail tycoon Henry Sy, posted a net income of P578 million in the nine months ending September this year, an increase of 97.8 percent from the year-ago level.

Earnings per share amounted to 19 centavos compared with only 10 centavos the previous year.

Gross income reached P365.9 million, out of which P115.9 million came from property sales. Some P90.3 million was earned from interest and another P98.7 million from dividend income. Gains from the sale of investments in marketable securities amounted to P54.6 million.

As a result of the adoption of international accounting standards, the company’s unrealized mark-to-market gains on investments booked this year amounted to P329.9 million.

Total operating expenses, on the other hand, went up to P32 million. Interest expense accounted for P15.2 million, coming from additional loans obtained by subsidiary SM Synergy Properties Holdings Corp. to finance its property venture, Chateau Elysee.

Chateau Elysee is a residential condominium project located near SM Bicutan. Cluster I is ready for occupancy while Cluster 2 is nearly completed and will be turned over to the owners by February 2006.

About P1.5 billion has been earmarked this year for the Chateau Elysee venture.

As of end-September this year, total assets of SMDC stood at P6.9 billion, up 26 percent from P5.4 billion a year earlier. SMDC is developing another residential condominium right across SM City Sta. Mesa to be called The Centerpointe Residences.

It also forged an agreement with state pension fund Government Service Insurance System for the development of a residential condominium in Baguio City. To be called Baguio Residences, the project is envisioned as a condotel, servicing residents and visitors of the country’s summer capital.

Another project is the Hacienda Looc, a residential and beach resort community located in Nasugbu, Batangas. The first phase will house a beach resort, a golf course, and residential communities. To continue growing, SMDC continues on the lookout for projects that will deliver better returns to its shareholders.