SMDC profit up 51% to P3.1 billion

MANILA, Philippines -  SM Development Corp. (SMDC), the residential development unit of the family of retail tycoon Henry Sy, said its net income jumped 51 percent in the first nine months this year to P3.1 billion on the back of robust sales.

In a disclosure to the Philippine Stock Exchange, SMDC said revenues from real estate operations reached P11.3 billion, up 86 percent from P6.1 billion a year earlier, while operating income surged 91 percent to P3 billion.

Strong sales take-up of the company’s residential condominium projects coupled with expected construction completion rates contributed significantly to SMDC’s positive results, it said.

From January to September, SMDC sold about 7,900 residential units worth approximately P17.6 billion.

“This solid first nine months’ 2011 performance remains very exciting and promising, a fitting testament to the underlying robust demand for our products due to its strong value proposition to the buyers. Our confidence level is very high that the affordable five-star homes in prime location concept, and the excellent investment opportunity being offered to earn better returns are strongly compelling,” said Henry T. Sy Jr., vice chairman and chief executive officer of SMDC.

As of end-September SMDC has 16 residential projects in the market. Fully completed projects are Chateau Elysee, Mezza Residences, Lindenwood Residences, Berkeley Residences, Grass Residences Tower 1, Field Residences Tower 1, 2 and 8 and Sea Residences Phase 1. The company’s on-going projects are Grass Residences Towers 2 and 3, Sea Residences Phases 2 and 3, Field Residences Tower 3 and 7, Princeton Residences, Light Residences, Jazz Residences, Sun Residences, Wind Residences, Blue Residences, and M Place@South Triangle. Launched earlier this year are M Place@Ortigas and Mezza 2 Residences.

For the rest of 2011, SMDC will be rolling out two more new residential condominium projects – Green Residences beside La Salle Taft Avenue in Manila and Shell Residences at the mall of Asia complex, in Pasay City. Next year, SMDC is targeting to launch at least five more projects.

Recently, SMDC again garnered the top spot in Metro Manila’s residential condominium market according to Colliers International Philippines. It sold the most number of Metro Manila residential condominium units and attained the biggest amount in terms of sales value during the first half of 2011.