SM Prime profit rose 16% to P19.3B in first semester

Property giant SM Prime Holdings grew net profit in the first semester by 16 percent year-on-year to P19.3 billion on higher earnings across its shopping mall, residential development, office and hotel businesses.

For the second quarter alone, SM Prime’s net income increased by 16 percent year-on-year to P10.5 billion, sustaining the pace of growth seen in the first quarter.

Consolidated revenues for the second quarter likewise grew by 16 percent year-on-year to P30.51 billion.

For the six-month period, consolidated revenues increased by 15 percent to P57.05 billion, while overall operating income went up by 17 percent to P27.42 billion, SM Prime disclosed to the Philippine Stock Exchange on Monday.

“The country’s stable economy has helped SM Prime maintain its growth in all core businesses for the first half of 2019,” SM Prime president Jeffrey Lim said.

Consolidated mall revenues increased by 8 percent year-on-year to P31.07 billion during the six-month period, accounting for 55 percent of consolidated revenues.

SM Prime has 72 malls in the Philippines and seven malls in China with a total gross floor area of 9.3 million square meters as of end-June.

Rental revenues from its shopping mall empire reached P26.22 billion for the six-month period from P24.49 billion in the same period last year, driven by the 7-percent same-mall-sales growth as well as the increasing contribution from newly opened and expanded malls in 2018.

Cinema and event ticket sales rose by 9 percent year-on-year to P2.81 billion for the same period.

The residential group, which accounts for 36 percent of total business, grew six-month revenues by 26 percent year-on-year to P21.43 billion, driven by high-rise residential projects in Metro Manila.

The commercial properties group, which includes offices, hotels and convention centers, grew their combined revenues by 13 percent year-on-year to P4.63 billion in the first semester.