SM Prime’s H1 profit down 46%

SM Prime prexy Jeffrey Lim and chair Henry Sy Jr.

Local property giant SM Prime Holdings Inc. booked a 46 percent year-on-year decline in first semester net profit to P10.4 billion due to large shopping mall rental waivers and discounts given to tenants since the coronavirus (COVID-19) crisis hit the country.

“The first half of 2020 has been one of the most challenging periods we’ve faced as a company. With the government maintaining the implementation of quarantine protocols in most key areas in the Philippines where our businesses are, SM Prime is committed to sustaining its operations while adhering to the strict safety measures implemented by the government and continue providing convenience to our customers,” SM Prime Jeffrey Lim said on Tuesday.

SM Prime’s rental income from Philippine malls dropped by 44 percent year-on-year to P13.1 billion in the first half as mall revenues fell by 49 percent to P14.4 billion. The company waived rental and gave discounts to tenants since the start of the quarantine measures in mid-March, thus losing P11 billion in revenues as of end-June.

Consolidated revenues for the first six months amounted to P43.7 billion, 23 percent lower year-on-year.

The company seeks to “innovate and strategize” to recover from the unprecedented effects of the pandemic as it assured continued support to tenants as well as assistance to various stakeholders across the country.