Sy-led SMDC earns P1.4-B in Q1, up 14%

Aya Lowe
(UPDATED) The Sy-led property firm's income still grew double digit at 12% in the first quarter, but slower than the 33% in the same quarter in 2012

SMDC officials at the property firm's annual stockholders meeting on April 24, 2013 stockholders meeting. Photo by Aya Lowe

MANILA, Philippines (UPDATED) – Sy-led property company SM Development Corp. (SMDC), one of the most aggressive real estate companies in the country, posted a consolidated net income of P1.4 billion during the first quarter of 2013.

This 12% increase from the P1.2 billion earned a year ago reflects a slower pace of growth in the same period in 2012. In the first quarter 2012, SMDC’s income grew a robust 33%

Jeffrey Lim, who was announced as SMDC’s new president and chief operations officer at the company’s annual stockholders meeting on Wednesday, April 24, attributed the continuous double-digit growth to “improved gross profit margin and better economies of scale.”

Below are highlights of SMDC’s financial performance in the first 3 months of 2013:

  • Net margins increased to 23% in the first quarter of 2013 from 22% during the same period last year
  • Net income from real estate operations amounted to P1.3 billion 11 % higher than last years P1.1 billion. This accounted for 92% of total consolidated net income
  • Realized revenues from real estate operations amounted to P5.9 billion a growth of 4% from last years P5.6 billion. According to Lim, 79% of the revenue came from its 7 most recent real estate projects, which include Jazz, Light, Shell, Sun, My Place at South triangle and Wind in Tagaytay.
  • Asset base expanded by 47% year on year to P85.2 billion
  • Net debt to equity remains conservative at a ratio of 30% of net debt to 70% equity

So far, the developer has sold 42,962 units with remains inventory of 11,621 units from their 20 residences and projects 19 of which are located in Metro Manila and one in Tagaytay.

2013 expansion, capex

For the remaining 2013 the company will launch 3 to 4 new projects and will expand on 3 project.

This new expansion will add 30,000 new units to their inventory.

Over the next 3 years SMDC will spend P71 billion to drive this expansion.

For 2013 SMDC will spend approximately P20 billion in capital expenditure. Of this amount, around P13 billion will be for project development and P7 billion for land banking. 

Sy said they will do some fundraising but are still working on the details for that in terms of percentage of internal and percentage of borrowing.

The first quarter of 2013 saw P7 billion in terms of sale take up, equivalent to 2,560 units. This is expected to rise as the company launches more projects towards the end of 2013.

To date SMDC has 54,583 units in its portfolio ranging from completed projects to those ongoing construction. SMDC currently has a land bank of 173 hectares with 69 hectares in Metro Manila. The remaining in Cebu and Davao. –





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