SM Prime chair Henry Sy Jr., president Jeffrey Lim and director Hans Sy at the property firm’s stockholders meeting on April 25, 2017
Sy family-led property giant SM Prime Holdings grew its first semester net profit by 14 percent year-on-year to P14.39 billion on higher earnings from its shopping mall and residential development businesses.
For the second quarter alone, SM Prime’s net profit rose by 15 percent year-on-year to P7.79 billion, the company said in a regulatory filing on Monday.
Six-month consolidated revenues grew by 10 percent to P43.25 billion while overall operating income went up by 13 percent year-on-year to P20.11 billion.
“SM Prime’s performance in the first half of the year reflects a more balanced revenue and income streams from our various businesses including the growing contribution from our provincial operations,” SM Prime president Jeffrey Lim said.
“We are happy to report that our investments in the provinces are now bearing fruits, particularly in mall operations given that these account for more than half of our Philippine malls portfolio. In the coming years, we are expecting a growing contribution from our residential group as we are launching more housing projects across the country.”
Mall revenues, which contributed 60 percent of SM Prime’s consolidated revenues, rose by 10 percent year-on-year in the first half to P25.68 billion on higher rental from its expanding mall network.
To date, SM Prime has 63 shopping malls in the Philippines and seven in China with a GFA of
7.8 million sqms and 1.3 million sqms, respectively. The company is scheduled to open new malls,
including SM City Puerto Princesa in Palawan.
The residential group, which accounts for 32 percent of SM Prime’s consolidated revenues, posted a 5 percent increase in six-month revenues to P13.91 billion on higher construction accomplishment of SM Development Corp. projects launched since 2014.
Recently launched projects resulted in 22 percent reservation sales growth in the first half to P27.55 billion, equivalent to an 8 percent increase in unit sales to 8,699 units year-on-year. These residential projects are mostly located in the Mall of Asia Complex.
The rest of SM Prime’s businesses posted a revenue growth of 43 percent to P3.74 billion in the
first half of the year. The growth was attributed to the rental revenues from FiveEcomCenter, which was launched in 2015, and Conrad Manila, which opened last June 2016.
Currently, SM Prime has six office buildings with a combined GFA of 383,000 sqm. ThreeECom and FourE-Com Centers are under construction and scheduled for completion in 2018 and 2020, respectively. These additional office buildings will add an estimated GFA of 320,000 sqms in the company’s office portfolio.
The hotel and convention centers group, on the other hand, has a portfolio of six hotels with over 1,500 rooms, four convention centers and three trade halls.