MANILA, Philippines – Property firm SM Development Corp. (SMDC), which is studying a merger with mall operator SM Prime Holdings Inc., said its income hit nearly P5 billion last year on strong residential sales.
In a disclosure, the firm said its consolidated net income jumped 17.5 percent to P4.9 billion, backed by a 16.4-percent uptick in income from real estate sales to P4.7 billion.
SMDC’s profit growth topped the 12-15 percent target within the SM Group, which includes shopping malls, retailing, banking and hotels.
Operations of SMDC became more profitable last year as return on equity improved to 13 percent from 12 percent a year ago.
“The number of units sold during the year increased 7.6 percent to 12,614 units from 11,726 units in 2011,” SMDC said.
Reservation sales surged a fifth to P31.7 billion from P26.3 billion a year earlier.
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SMDC said most of the units sold were from Shell Residences in the Mall of Asia complex, Green Residences along Taft Ave., Jazz Residences in Makati, Light Residences along EDSA, Sun Residences in Quezon City, Grass Residences, also in Quezon City, and Wind Residences in Tagaytay City.
Total revenues from real estate sales picked up by one-third to P21.6 billion from P16.2 billion.
SMDC expects to continue its robust sales this year given the property boom and its ongoing residential projects.
As of end-2012, SMDC had 15 ongoing residential condominium projects all over Metro Manila, with the exception of Wind Residences in Tagaytay.
SM Group controlled by the family of retail tycoon Henry Sy, is studying a proposal to merge its mall and property development businesses to create a real estate behemoth that could topple industry giant Ayala Land Inc.