SMDC Reports 30-Fold Increase in Q1 2009 Consolidated Profits of Php419m

SM Development Corporation (SMDC) reported a 30-fold increase in its first quarter 2009 consolidated net income to Php419 million coming from just Php14.0 million in 2008. Real estate operations continue to underpin the company's sharp growth, even with the recovery of the equities market, which tempered profits last year due to mark-to-market losses in SMDC's investment portfolio.

Net income from real estate operations surged 353% during the first quarter of 2009 to Php421million, from just Php93 million the previous year. SMDC’s gross profit from real estate sales reached Php615 million, for a 156% increase year on year. This resulted in a gross profit margin of 46%. EBITDA meanwhile, reached Php463 million, for an EBITDA margin of 35%.

Realized revenues from real estate operations jumped 131% to Php1.3 billion, compared to Php575 million in 2007. For the first quarter of 2009, SMDC sold a total of 1,021 residential units worth Php2.4 billion. Compared to the same period in 2008, the value of units sold increased by 109%.

Roger R. Cabuñag, SMDC President said, “We are highly encouraged by the robust performance of SMDC during the first quarter of the year. In a period that proves challenging to many due to the current global financial crisis, SMDC is surging ahead, recording sharp earnings growth and robust sales. This positive development reflects the trust and confidence that the market has on the SM name, coupled with the company's ability to deliver on its promise of five-star quality residences at affordable prices.”

SMDC has five on-going projects. Chateau Elysee, a six-cluster mid-rise condominium project in Parañaque City, is now in its fifth cluster, which is 30% complete. Mezza Residences across SM City Sta. Mesa is 95% complete with the remaining two towers due for turnover to homebuyers by the end of this year. Berkeley Residences in Katipunan Road across Miriam College is 31% complete, and Grass Residences beside SM North EDSA is 31% complete with its phase one. Lindenwood Residences, which is a residential subdivision in Muntinlupa City, is 99% complete.

Last year, SMDC broke ground for two more condominium projects. One is the Sea Residences near the Mall of Asia Complex in Pasay City, which is 7% complete and the other is Field Residences in Sucat, Parañaque City, which is approximately 20% complete. Both these projects are enjoying brisk sales.
For 2009, SMDC is set to launch the Princeton Residences, which is near the Gilmore LRT-2 Station along Aurora Boulevard in Quezon City; the Jupiter Residences along Jupiter Street in Makati City; the Tree Residences along Felix Avenue in Cainta, Rizal; and the Wind Residences in Tagaytay City.

Source SMDC Press Release, April 29, 2009