SMDC sees up to 15% rise in 2012 income

MANILA, Philippines – SM Development Corp. (SMDC), the middle-income residential developer of taipan Henry Sy, expects its earnings to grow by 10% to 15% this year on the back of strong sales.

“That is just being very conservative,” said company president and COO Rosaline Qua. “I don’t want to give you a number that is so fantastic that I fail to deliver. I think my other competitors do enough of that.”

In the first quarter, SMDC posted a 33% increase in net income to P1.21 billion from P920 million in the same quarter of 2011.

The company said net income from real estate operations grew 22% to P1.14 billion from P930 billion last year.

It added it pre-sold P8.97 billion worth of units in January to March, up 59% year-on-year and double its target for the period. 

“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,” said Henry Sy Jr., CEO of the company. 

Although SMDC only entered the real estate market in the last decade, it already has 15 residential projects under its “SM Residences” brand, and 2 under its “M Place” brand. 

Last year, SMDC launched Green Residences along Taft Avenue, Shell Residences in Mall of Asia Complex, M Place at Ortigas in Pasig and Mezza II Residences in Sta. Mesa. This year, the company plans to launch 5 more new residential condominium projects. – Rappler.com