Property giant SM Prime Holdings grew its nine-month net profit by 15 percent year-on-year to P20.05 billion, driven by higher shopping mall and residential revenues.
For the third quarter alone, SM Prime’s net profit rose by 16 percent year-on-year to P5.66 billion.
“SM Prime’s performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market. The timely expansion of our malls and launches of our residential projects in the provinces are positively contributing to the strong performance of our company. Given all these, we remain optimistic that we are on track to meet our growth target this year,” SM Prime president Jeffrey Lim said in a press statement.
SM Prime’s consolidated revenue for the nine-month period grew by 12 percent year-on-year to P64.69 billion while operating income grew by 16 percent to P30.14 billion for the same period.
The growth was attributed to additional rental revenues from mall expansions, improvement in same-mall-sales and higher contribution from residential sales.
Nine-month mall revenues grew by 10 percent year-on-year to P38.58 billion, contributing 60 percent of the consolidated revenues.
Mall rentals in the nine-month period went up by 10 percent year-on-year to P32.83 billion, primarily due to the expansions and new malls that opened in 2016 and 2017. SM Prime has 65 shopping malls in the Philippines and seven in China with a gross floor area of 8 million square meters and 1.3 million sqm, respectively.
SM Prime’s residential group’s revenues—which accounted for 32 percent of total business—expanded by 10 percent to P20.50 billion in the nine-month period.