SM Prime’s Q1 profit down 5% on COVID19 disruption

SM Prime prexy Jeffrey Lim and chair Henry Sy Jr.

Property giant SM Prime Holdings posted P8.3 billion in first quarter net profit, down by 5 percent year-on-year, as coronavirus-related quarantine measures took a heavy toll on its shopping mall leasing business.

Consolidated revenues from January to March fell by 3 percent year-on-year to P25.8 billion.

“The company’s first quarter results reflect the business disruption impact of the quarantine measures implemented last March 16, which affected primarily our leasing businesses. The residential segment has still shown strong growth in the first three months, abating the effect of revenue losses in the malls segment. The balance between our recurring and developmental income streams sustains our healthy financial position during this pandemic,” SM Prime president Jeffrey Lim said in a disclosure to the Philippine Stock Exchange on Friday.

SM Prime’s mall business, which accounts for 47 percent of the consolidated revenues, has temporarily closed operations since the implementation of the enhanced community quarantine (ECQ), except for stores that offer essential products and services. The company waived mall rental fees nationwide.

On the other hand, SM Prime’s residential group led by SMDC, which accounts for 44 percent of consolidated revenues, saw a 23 percent year-on-year increase in first quarter revenues to P11.4 billion.