Home » Articles » Business

SM Remarkable First Quarter 2012 for SMDC Yields 33% Earnings Growth and 100% Rise in Value of Pre-sold Units

(25 April 2012. Pasay City, Philippines.) Residential developer SM Development Corporation (SMDC) had a remarkable run in the first quarter of 2012 as it reported a 59% year on year increase in the value of pre-sold units worth Php8.97 billion, double the company’s sales target for the quarter. In terms of volume, SMDC pre-sold 3,684 condominium units, 51% more than last year’s first quarter volume.
SMDC also reported a 72% surge in consolidated revenues to Php5.83 billion, of which revenues from real estate operations amounted to Php5.61 billion, growing likewise by 72% from Php3.26 billion in 2011. Consolidated net income grew 33% to Php1.21 billion from Php0.92 billion during the same period in 2011. Of the total, net profit from real estate operations amounted to Php1.14 billion, for a 22% growth from Php0.93 billion during the same period last year. EBITDA grew 38% to Php1.49 billion for an EBITDA margin of 27%.

The sustained strong interest of numerous homebuyers in SMDC’s various residential condominium projects was matched by a fresh supply of attractive projects launched last year namely Green Residences along Taft Avenue, Shell Residences in Mall of Asia Complex, M Place @ Ortigas in Pasig, and Mezza II Residences in Sta. Mesa.

SMDC vice chairman and chief executive officer Henry Sy, Jr. said, "We are very pleased to report that in the first quarter of 2012, SMDC far exceeded its pre-sales target. It reinforces our belief that the Philippines continues to have a huge underserved residential market that longs for affordable homes, a better lifestyle, and the conveniences of strategically located residences. We are therefore firmly committed to address the needs and aspirations of a market that is likely to grow even further with the expected improvement in the economy.”

SMDC’s total assets for the period reached Php58.0 billion, 28% higher than the Php45.3 billion attained during the same period in 2011. It maintained a very conservative financial position with a net debt-to-equity ratio of only 10%. This is SMDC‘s way of protecting the company from the cyclicality of the industry. Book value per share was up 16% to Php4.42.

Earlier this month, SMDC successfully raised approximately Php6.3 billion from its issuance of five-year, fixed rate corporate notes, jointly arranged by BDO Capital and Investment Corporation and Standard Chartered Bank. The issue was oversubscribed, clearly indicating the trust and confidence in SMDC of institutional investors, which were composed of banks, trust companies, and insurance firms.

SMDC currently has 15 residential projects under its SM Residences brand and two projects under its M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.
- https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"SM Remarkable First Quarter 2012 for SMDC Yields 33% Earnings Growth and 100% Rise in Value of Pre-sold Units" was written by Mary under the Business category. It has been read 1203 times and generated 0 comments. The article was created on and updated on 25 April 2012.
Total comments : 0