Property giant SM Prime Holdings (SMPH) booked P15.6 billion in net profit at end-September, up 9 percent year-on-year, as the company kept a tighter lid on expenses, while other income made up for the decline in shopping mall and residential development revenues.
For the third quarter alone, net profit amounted to P3.98 billion, flat from the P3.94-billion bottom line seen in the same period last year.
“The increase in consolidated [nine-month] net income was due to the increase in other income by P2.5 billion, which mainly consists of interest income, dividend income, equity in net earnings and foreign exchange gains and losses,” said Alex Pomento, SMPH head of investor relations.
Operating expenses, on the other hand, declined by 3 percent year-on-year.
Consolidated revenues stood at P56.8 billion, 6-percent lower than the revenues in the same period last year, SMPH said in disclosure on Monday.
SMPH’s nine-month profit accounted for 60 percent of earnings that market consensus expects SMPH to deliver for the whole year.
“SM Prime continues to develop new ways and solutions in its businesses by developing sustainable programs that provide safe and secure environment for all of its stakeholders.
This is in line with our anticipation of welcoming more people in our establishments, primarily in our malls and other commercial facilities, where thousands of our partner-tenants can showcase their products and services this coming [holiday season],” SMPH president Jeffrey Lim said.
SMPH’s residential business, led by SM Development Corp. (SMDC), accounted for 56 percent of the nine-month consolidated revenues amounting to P32.1 billion. This declined by 6 percent year-on-year.
As an indicator of future earnings trajectory, SMDC’s reservation sales reached P76.3 billion in the first three quarters, 14 percent higher year-on-year.
The Philippine mall business, which accounted for 28 percent of consolidated revenues, posted P15.8 billion in revenues in the first three quarters, 14 percent lower year-on-year. The reimplementation of stricter community quarantine in August affected the business, limiting the operation of nonessential shops.