SM Prime nets P17.5B on higher revenues

Southeast Asian property giant SM Prime Holdings Inc. (SM Prime) grew its consolidated net income by 13 percent year-on-year to P17.5 billion at the end of September, buoyed by higher shopping mall, office, residential development and hotel revenues.

For the third quarter alone, SM Prime’s net profit rose by 15 percent year-on-year to P4.9 billion, supported by a 14 percent expansion in revenues to P18.5 billion.

For the nine-month period, the company’s overall revenues improved by 11 percent to P57.8 billion, attributed to the sustained growth of its key business units: Rental operations and real estate sales.

“SM Prime sustained its overall performance as it benefited from the continued growth of the economy. The synergy and contribution of our business units are reflected in our strong results. We expect SM Prime’s success to continue over the medium-term as economic growth spreads to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” SM Prime president Jeffrey Lim said in a disclosure to the Philippine Stock Exchange on Monday.

58 malls in PH

Philippine shopping mall revenues grew by 9 percent year-on-year to P32.1 billion at the end of September. Rental income expanded by 11 percent to P26.9 billion from existing and new malls.

In the last two years, the group expanded its gross floor area (GFA) by one million square meters (sq m).  Excluding earnings from the lease of newly-built retail space, same-mall sales grew by 7 percent year-on-year.

Mall revenues from China rose by 5 percent year-on-year to P3.1 billion while operating income grew by 6 percent year-on-year to P1.5 billion.

Currently, SM Prime has 58 malls in the Philippines and six in China, all totaling 8.5 million sqms in GFA. By the end of 2016, SM Prime will have a combined GFA of almost 9 million sqms.

The residential group led by SM Development Corporation (SMDC) also contributed 32 percent to consolidated revenues.  Revenues grew by 10 percent year-on-year to P18.7 billion. Operating income also went up by 10 percent to P5.1 billion.