SM Prime 2022 profit up 38% to P30.1B

Sy-led property giant SM Prime Holdings Inc. said profits in 2022 soared to P30.1 billion as shopping mall revenues doubled after businesses and shoppers moved on from the COVID-19 pandemic.

SM Prime said in a stock exchange filing on Monday profits were up 38 percent for the year while total revenues jumped 29 percent to P105.8 billion.

“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for most of the year, owing to the robust consumer spending particularly in the last quarter,” company president Jeffery Lim said on Monday.

“We will continue to monitor this trend and watch out for impact of movements in the inflation and interest rates, including impact on our supply chain. Meanwhile, we are poised to build on the growth momentum and proceed to expand our footprint in key areas in the country,” he added.

SM Prime opened four new malls in the Philippines namely SM City Roxas in Capiz, SM City Tanza in Cavite, SM City Sorsogon in Bicol, and SM City Tuguegarao in Cagayan to end the year with 82 malls in the country.

Malls account for 47 percent of total sales. By the end of year, shopping mall revenues surged 106.6 percent to P49.8 billion.

SM Prime said started implementing full mall rentals in the second half of the year, pushing up leasing income by 92 percent to P44.1 billion.

Movie ticket sales saw even faster growth at over 400 percent to P5.7 billion.

Meanwhile, SM Prime’s residential business group, led by SM Development Corp. saw revenues drop 13 percent to P40.1 billion while reservation sales added 3.1 percent.

SMDC launched three new residential developments in different provincial cities of the Philippines in 2022. These include Vail Residences in Cagayan de Oro, Now Residences in Pampanga, and Zeal Residences in General Trias, Cavite.

SM Prime said office and hotel and convention center revenues grew 59 percent to P10.5 billion.

SM Prime launched FourE-Com Center in 2022, which is located at the Mall of Asia Complex in Pasay City, as well as the SMX Clark Convention Center in Pampanga, which is located alongside SM City Clark and Park Inn Radisson Clark.