SM Prime nets P27.6B

SM Prime City Olongapo

Property giant SM Prime Holdings grew its recurring net profit last year by 16 percent to P27.6 billion on higher rental revenue from shopping malls and residential development.

Consolidated revenues grew by 14 percent to P90.9 billion last year. Overall operating income improved by 15 percent to P40.6 billion, driven by increase in rental revenue from malls opened and expanded in the last two years and also supported by strong housing business.

“SM Prime continues to benefit from the sustained overall economic progress of the Philippines that resulted in higher spending power for most Filipino families. This translated to consistent growth of our key businesses that include higher rental revenues of our malls, increased residential units sales and growing contribution of our other business segments.” SM prime president Jeffrey Lim said in a press statement on Monday.

SM Prime’s mall revenues grew by 9 percent to P53.2 billion in 2017. Rental income improved by 11 percent to P45.3 billion, due to rising contribution of rentals from new and expanded malls that were launched in 2016 and 2017. These were: SM City San Jose Del Monte, SM City Trece Martires, SM City East Ortigas, SM CDO Downtown Premier, S-Maison at Conrad Manila, SM City Puerto Princesa, and SM Center Tuguegarao Downtown.

Excluding the impact of newly opened malls, same mall-sales growth was at 7 percent across all mature malls.

Cinema and event ticket sales improved by 2 percent to P4.8 billion last year while revenues from amusement and merchandise sales also rose by 8 percent to P3.1 billion.

SM Prime, the country’s largest shopping mall developer, had 67 malls in the Philippines offering eight million square meters (sqm) of gross floor area (GFA) and seven malls in China with 1.3 million sqm of GFA at 2017 year-end.

The residential group under SM Development Corp. also grew revenues by 18 percent to P30 billion last year. The growth was due to higher construction accomplishments of projects launched in 2013 up to 2016 namely Shore Residences and Shore 2 Residences in Pasay City, Air Residences in Makati City, and Fame Residences in Mandaluyong City as well as continued increase in sales take-up of ready-for-occupancy (RFO) units.