PROPERTY giant SM Prime Holdings Inc. (SM Prime) booked a 12-percent growth in first semester net income to P12.6 billion, driven by higher earnings from mall operations and residential development.
The growth in six-month profits was supported by a 9 percent increase in consolidated revenues to P39.2 billion, SMPH said in a disclosure to the Philippine Stock Exchange on Monday.
“SM Prime’s integrated development program in the Philippines that is geared more towards provincial expansion sustained its financial performance in the first half of the year. SM Prime is well-positioned for higher growth given that the Philippines’ economic upturn is starting to spread in the provinces,” SM Prime president Hans Sy, said.
In the first half of 2016, mall revenues rose by 9 percent year-on-year to P23.6 billion, contributing 60 percent of consolidated revenues. Of total, 85 percent of revenues came from leasing retail space.
Mall revenues were driven by the 7 percent growth in same-malls-sales and contribution from the new retail space that were added in the past two years.
SM Prime’s residential group – which accounted for 34 percent of consolidated revenues – grew by 6 percent year-on-year to P13.2 billion.
Meanwhile, SM Prime’s board also formally approved on Monday the appointment of Jeffrey Lim – the company’s long-time chief finance officer – as president effective Oct. 1. He will replace Hans Sy who will retire but “still continue to be involved in the company’s overall strategic direction as director and chairman of the executive committee,” the company said.