SM Devt says Q1 earnings rose 45% to P916.3M

SM Development Corp. (SMDC), the property development arm of SM Group, said Tuesday that higher sales revenue drove its first quarter earnings higher by nearly 50 percent. In a statement, SM Development said its net income jumped 45 percent to P916.3 million in January to March as consolidated revenues surged 70 percent to P3.4 billion. Also, revenues from real estate operations climbed 69 percent to P3.3 billion from P1.9 billion. "These significant increases were primarily driven by the bigger sales volumes and higher incremental completion rates of ongoing projects," the company said. SMDC pre-sold 2,480 residential units worth about P5.6 billion. "For 2011, SMDC intends to launch at least five new residential projects, all located in prime locations within Metro Manila, and we expect them to underpin the now dominant stature of the company," said Henry Sy Jr., SMDC vice chairman and CEO. During its annual stockholders meeting on Tuesday, the company also announced a P0.05 regular dividend and a P0.05 special dividend for a total of P732.8 million or 24 percent of the company's net income last year. Stockholders on record as of May 26, 2011 will be entitled to the dividends, payable June 21, 2011. "The stockholders likewise approved the increase of authorized capital stock of the company from P8 billion to P12.4 billion, the subscription and payment of which [are] to be effected by declaration of stock dividend of P1.1 billion," the company said. — CMA/VS, GMA News