SM Prime H1 2023 profit up 38% to P19.4B

MANILA  -The Sy family’s property giant SM Prime Holdings Inc. sees sustained growth for the rest of 2023 after first semester profits surged 38 percent to P19.4 billion.

“We are optimistic about the company’s full-year 2023 results given the improving market conditions,” SM Prime president Jeffrey Lim said in a statement on Monday.

“SM Prime will also continue to look for new and sustainable ways of reaching our customers and provide them unparalleled experience and value in our developments,” he added.

Total revenues during the period also grew 29 percent to nearly P60 billion.

Gains during the first six months of the year were driven by its shopping malls segment, which accounted for over half of revenues.

SM Prime said shopping malls in the Philippines booked revenues of P31.5 billion, up 53 percent. Rental incomes grew 42 percent during the period on higher tenant sales and foot traffic.

Local cinema, ticket sales, and other revenues improved to P5.2 billion, up 156 percent over the same period last year. The company said its malls in China also recorded higher revenues during the period.

“The strong performance of SM Prime’s main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry,” Lim said.

“We will continue to be strategic in expanding our footprints and operations across different localities where we can continue to be partners for growth and progress,” he added.

Residential sales, led by subsidiary SM Development Corp., booked revenues of P17.6 billion, which was modestly lower versus the same period in 2022. Reservation sales, an indicator of future revenues, added 17 percent.

“The improving market condition provided local and overseas Filipino buyers capacity to invest in SM Prime’s residential projects,” the developer said.

Other business segments, including offices, hotels, and convention centers, also booked a 40 percent revenue growth to P6.2 billion during the first semester of the year.