Rentals, sales in malls spur SM Prime profit to grow 27%

MANILA  -Better mall rental income and higher revenues from other key businesses enabled SM Prime Holdings Inc. to register a 27-percent growth in net income during the first quarter.

In a disclosure, the listed company said its bottom line grew to P9.4 billion as consolidated revenues climbed by 20 percent to P28.7 billion.

Consolidated operating income, meanwhile, soared by 30 percent to P13.9 billion.

“[Our] recurring businesses have remarkably bounced back after being hit by the mobility restrictions and economic disruptions,” SM Prime president Jeffrey Lim said.

Accounting for 54 percent of the revenue stream, SM Prime’s mall business earned P15.4 billion.

Mall rental income was up 72 percent to P13 billion due to higher foot traffic and tenant sales while local cinema, ticket sales and other revenues grew by nearly four times to P2.5 billion. Revenue contribution from its mall business in China was flat at RMB 200 million.

SM Development Corp. saw revenues drop by 29 percent to P8.5 billion partly because of canceled sales amid high inflation and increasing interest rates.

Office business segment revenues improved by 25 percent to P1.7 billion while that of hotel and convention centers surged by 129 percent to P1.5 billion.

—Tyrone Jasper C. Piad INQ

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