SM Development Corp. (SMDC), the listed condominium developer of billionaire Henry Sy, is seeing stronger- than-expected sales, giving rise to the possibility that the company will hike its full-year profit forecast to meet its original target, a top official said.
SMDC earlier said it expects net income to reach P4 billion in 2011, or a third higher than 2010, but this target was subsequently lowered by 20 percent amid concerns that the Philippine economy will slow down this year.
In a chance interview with reporters, SMDC chief operating officer Rosaline Qua said sales in the first five months were ahead of the record during the same period last year.
“It’s fair to say we are slightly above [target]. We are beyond what we expected in the first five months,” Qua said at the sidelines of an SMDC-sponsored sales event in Pasay City.
In response to a query on whether SMDC will hit its original P4 billion profit forecast, Cua said: “We are quite optimistic we should be able to [reach] that [goal]. But it is also very guarded.”
Cua said the sales uptick was supported by an increasing number of buyers abroad after the company stepped up its overseas marketing efforts. Overseas-based Filipinos still account for a fifth of total sales, Cua said, although there is potential for this figure to grow further.
“I think Filipinos are all the more seeing the need to invest [in real estate]. There is a shift there,” she said.
SMDC earlier said that it is spending up to P17 billion to launch five new projects in Metro Manila, including under its MPlace brand, which caters to the affordable segment. New projects, the company said, would help it beat last year’s record when it sold 10,000 units.
SMDC reported that first-quarter profit rose 45 percent to P916.3 million, while revenues rose 70 percent to P3.4 billion. Revenues from real estate operations jumped by 69 percent to P3.3 billion.
Cua said the company is still evaluating an earlier-announced share offering that would widen its public float to 25 percent from the current 16 percent. SMDC shares declined 0.89 percent to P8.90 each on Thursday’s trading.
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