Property giant SM Prime Holdings grew its recurring net profit last year by 16 percent to P27.6 billion on higher rental revenues from shopping malls and offices alongside bigger earnings from residential developments.
Consolidated revenues grew by 14 percent to P90.9 billion last year. Overall operating income improved by 15 percent to P40.6 billion.
“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 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 as new and expanded malls opened. Excluding contributions from newly opened malls, sales growth was at 7 percent across existing ones.
Cinema and event ticket sales improved by 2 percent to P4.8 billion last year while revenues from amusement and merchandise sales rose by 8 percent to P3.1 billion.
SM Prime, the country’s largest shopping mall developer, has 67 malls in the Philippines offering eight million square meters (sq m) of gross floor area (GFA) and seven malls in China with 1.3 million sq m of GFA by end-2017.
The residential group under SM Development Corp. also grew revenues by 18 percent to P30 billion last year. This was due to more construction accomplishments beginning 2013.
As a measure of future revenue growth, SMDC’s reservation sales grew by 21 percent in terms of sales value to P57.8 billion last year. Unit sales went up by 4 percent to 17,259 from 16,670.
Other businesses grew revenues by 32 percent to P7.9 billion. Commercial properties posted a revenue growth of 12 percent while hotels and convention hubs, 49 percent.