Economic reopening buoys SMPH

Jeffrey Lim

The easing of pandemic restrictions pushed up profits of Sy family-led property giant SM Prime Holdings Inc. (SMPH) by 15 percent year-on-year to P7.4 billion in the first quarter.

This was supported by the comeback of its shopping malls segment, whose revenues jumped 40 percent to P8.2 billion versus the same period in 2021.

Overall, SM Prime closed the quarter with total revenues of P23.9 billion, up 15 percent, while operating income jumped 17 percent to P10.1 billion compared with their respective levels in the previous year.

“The significant improvement in mobility restrictions and the continuous reopening of the local economy in the first three months of 2022 have provided SM Prime further boost to expand its businesses and reach more customers through its integrated property developments,” SM Prime president Jeffrey Lim said in a statement on Tuesday.

Mall earnings were severely impacted by the COVID-19 pandemic, however, the easing of community quarantine levels in the first quarter allowed more shops to operate.

Thus, rental income recovered by 34 percent to P7.6 billion from January to March. Movie ticket sales also surged 172 percent to P600 million while the company’s China malls business saw revenues climb 3 percent to 205 million Chinese renminbi (P1.6 billion).

Residential segment

SM Prime also owns residential developer SM Development Corp., whose revenues were relatively flat at P12 billion. Sales takeup during the quarter—an indicator of future revenue trajectory—hit P31.1 billion, mainly from its residential tower developments in Mandaluyong, Parañaque and Makati.

“Despite the sudden COVID-19 cases surge in January 2022, we were able to maintain our growth momentum in the succeeding months while prioritizing the health and safety of all our stakeholders. We remain optimistic this year as the government continues its efforts in containing the spread of COVID-19,” Lim said.

The builder also owns office buildings, hotels and convention centers. These grew combined revenues by 30 percent year-on-year to P2 billion during the quarter.

Office rentals alone jumped 1 percent to P1.4 billion, while hotels and convention centers doubled revenues to P600 million during the period. INQ