SM Prime hits P 40-B profit

MANILA, Philippines  —Property giant SM Prime Holdings Inc. grew its net profit last year by 33 percent to P40 billion, driven by the continued rebound of the shopping mall business in the aftermath of the pandemic.

Mall revenues expanded by 30 percent to nearly P72 billion.

Consolidated revenues rose by 21 percent to P128.1 billion, based on a regulatory filing on Monday.

“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023. We continue to see this growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” SM Prime president Jeffrey Lim said.

The mall business accounted for 56 percent of consolidated revenues. Mall rental income improved by 24 percent to P61.3 billion.

The residential business group, led by SMDC, recorded an 8-percent growth in revenues to P43.1 billion. Reservation sales, an indicator of future revenue booking, stood at P102 billion in 2023. This translated to more than 21,000 residential units sold in 2023.

SM Prime also aims to raise as much as P100 billion from the debt market, anticipating potential delays in its record-breaking real estate investment trust initial public offering.

READ:  SM Prime eyes P100-B bond program

In a separate stock exchange filing, SM Prime revealed plans for a P100-billion long-term bond program.

The move aligns with efforts to prepare other sources of funding to support its aggressive expansion this year.

READ: SM Prime in ‘no rush’ to launch $1-B IPO

Business tycoon and SM Prime executive committee chair Hans Sy earlier said there was “no rush” to launch a $1-billion real estate investment trust stock market debut. INQ