July 2010 Grass Residences Investor Update

Real Estate News: SM property unit exceeds ’09 sales, sees 50% profit growth

Business World
Posted on 09:44 PM, June 23, 2010
http://www.bworld.com.ph/main/content.php?id=13105

STRONG DEMAND for housing has allowed SM Development Corp. to exceed the P10.5-billion sales logged last year, an executive said.

Sales performance in January up to end-May kept the listed property arm of the Henry Sy-led SM mall and banking group on track with its target of growing by 50% every year in the next five years.

“The sales last year, we have already surpassed it by end-May. That shows you how strong the market is,” Henry T. Sy, Jr., vice-chairman and chief executive of SM Development, said late on Tuesday.

“Right now [SM Development is] still on track,” Mr. Sy said when asked how the company was faring against its growth projection.

SM Development recorded a 32-fold profit growth last year to P1.8 billion from P56.8 million the previous year, bucking the economic slowdown.

Last year, the property developer pre-sold 4,892 residential units worth approximately P10.5 billion, 133% higher than 2008 figures.

Another “upside” this year would be the change in government leadership on June 30, Mr. Sy said.

“If the new administration [will] progress further, our sales might progress faster than [the target],” he said.

At the end of 2009, SM Development had a roster of 12 high-rise residential projects, up from only seven in end-2008.

On Tuesday, SM Development launched the P2-billion My Place South Triangle, its first project under new residential brand “My Place,” which offers “independent living” for young and single homeowners.

Shares in SM Development, whose net income rose by more than half to P632 million in the first quarter due to revenue stream from new projects, dropped to P7.10 apiece yesterday from P7.20 on Tuesday.

-- N. J. C. Morales



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