MANILA, Philippines — Southeast Asian property giant SM Prime Holdings grew net profit in the first three months by 16 percent year-on-year to P8.8 billion on higher earnings from rental portfolio and residential development.
First quarter consolidated revenues rose by 14 percent year-on-year to P26.5 billion while operating income increased by 17 percent to P13 billion, SMPH disclosed to the Philippine Stock Exchange on Monday.
“SM Prime continues to benefit from the overall growth of the Philippine economy that boosts the household income of most families. We are optimistic that we will sustain this performance this year as we continuously expand our core businesses in developing provincial cities across the country,” said SM Prime President Jeffrey Lim.
The mall business, which accounted for 56 percent of the consolidated revenues, grew by 8 percent year-on-year to P15 billion in the first three months.
The residential group, led by SM Development Corp. (SMDC), recorded a 23-percent increase in revenues in the first quarter amounting to P9.2 billion. This accounted for 35 percent of the company’s total business. Business was driven by strong demand from international buyers, overseas Filipinos’ remittances, and rising disposable income of the emerging middle class.
Other businesses reported a consolidated revenue growth of 14 percent in the first quarter to P2.3 billion. Revenues from commercial properties group and hotels and convention centers contributed 9 percent to the overall consolidated revenues.