SMDC News in Business Mirror 080410

SMDC posts 24% income hike in first half
Business Mirror
Wednesday, August 4, 2010
by Miguel R. Camus / Reporter

LISTED SM Development Corp. (SMDC) posted a double-digit profit growth in the first six months of year as revenues from its real estate business grew 77 percent to P2.3 billion.

In a statement, SMDC said recurring net income from real estate operations jumped 47 percent to P1.1 billion.  Presales in the first half of 2010 surged more than threefold to P12.4 billion.

Consolidated net income for the first six months of 2010 grew by 24 percent to P 1.3 billion, after the effects of the one-time gain in marketable securities recorded last year and the increase in financing cost as SMDC raised P10 billion worth of bonds in the second quarter to fund landbanking activities.

SMDC attributed the results to the "strong" market take-up of SM Residences projects launched late last year, which include Sun and Princeton Residences both in Quezon City, Light Residences in Mandaluyong City, Jazz Residences in Makati City and Wind Residences in Tagaytay City.  "SMDC's healthy and dynamic performance during the first half of the year is a result of the dedicated service of the SMDC team and the market's strong acceptance of our product offerings," said SMDC vice chairman Henry Sy Jr. in a statement.

Meanwhile, SM Prime Holdings Inc. posted an 11-percent increase in net income in the second quarter of 2010, to P 1.9 billion. The figure brings SM Prime's first-half earnings higher by a tenth to P3.8 billion compared with that of 2009.

Second-quarter revenues also rose 19 percent to P5.9 billion bring the total for the first six months to P11.3 billion, or a gain of 17 percent. Rental income from its malls continued to provide the biggest share, as it grew 13 percent to P9.5 billion.  "The encouraging results delivered by SM Prime validate our positive sentiment on the economy, which is further bolstered by robust consumer spending.

In that light, we look to the second half of the year with more optimism in executing our expansion plans," said SM Prime president Hans Sy in a statement.