SMDC nets P984 M in 2006, up 51%

By JAMES A. LOYOLA SM Development Corporation (SMDC) reported a record financial performance in 2006 with net income of jumping up by 51 percent to P984 million. SMDC disclosed to the Philippine Stock Exchange (PSE) yesterday that sharp profit growth came from much higher revenues of P1.4 billion, up 66 percent, while EBITDA grew 51 percent to P1.1 billion. "The strong performance of SMDC in 2006 was derived largely from the sale of condominium units which generated gross profits from real estate of P280 million, three times more than that of last year," said SMDC president Rogelio Cabunag. SMDC sold units from two condominium projects in Bicutan, called Chateau Elysee, and in Sta. Mesa called Mezza Residences. Profits booked mostly came from the Bicutan project with development almost midway towards completion. Chateau Elysee is a French Mediterranean-inspired "condoville" with six clusters. Each cluster comes with one-, two-, or three-bedroom units with floor areas of 20, 40, and 60 square meters, respectively. It has seen the completion of Clusters 1 and 2, and 71 percent completion of Cluster 3. To date, this project has sold 675 units of which 351 were sold in 2006. Chateau Elysee is selling a total of 1,527 units for four clusters. Mezza Residences, on the other hand, was about 5 percent complete after having been launched in late 2006. It will have four 38-storey towers connected by a retail podium with each of the buildings having one-, two-, or three-bedroom cuts of 20, 40, and 60 sqm. It has since pre-sold 946 units, most of which will be booked in the next two to three years as more progress is made on the whole project. Mezza Residences is selling a total of 2,420 units, and is expected to be completed in three years. Cabunag said "2006 was a record year for us as we benefited from the buoyant residential property market. We are heartened by the strong response of the market to our projects which we are executing in line with the SM philosophy of superior quality and product innovation." In addition to its real estate operation, SMDC booked gains from sale of marketable securities amounting to P225 million, expanding by 126 percent from the previous year’s level, while income from interest and dividends stood at P203 million.

 

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