Malls, condos bolster SM Prime income by 11%

MANILA, Philippines — Gains from mall and residential businesses pulled up the earnings of SM Prime Holdings Inc. in the first three months of the year as the Sy-led developer expects further growth from its expansion plans.

In a stock exchange filing on Monday, SM Prime said its net income from January to March reached P10.5 billion, up by 11 percent as revenues grew.

Consolidated revenues climbed by 7 percent to P30.7 billion, driven by its mall business.

“We are encouraged [by] the performance of all our businesses in the first quarter of 2024,” SM Prime president Jeffrey Lim said.

“We are particularly bullish with our malls business as we plan to open a new mall this month of May, and another three within the year,” he added.

SM Prime’s mall business contributed P18.2 billion, or 59 percent, to the group’s total revenues. This represents a 7-percent growth as mall rentals, cinema, and event ticket sales grew.

READ: SM Prime hits P 40-B profit

Its residential unit, meanwhile, reported P8.5 billion in revenues, a 10-percent jump.

Meanwhile, SM Prime’s other business segments composed of offices, hotels, and convention centers booked a 9-percent growth in revenues to P3.4 billion.

The listed developer plans to spend around P100 billion this year on its projects, including four new local malls spanning a total of 400,000 square meters.

READ: SM Investments raises full-year capex to as much as P115B

On the housing side, SM Prime aims to launch 10,000 units in its residential developments, mainly mid-rise buildings.

The company aims to open at least three new projects in China despite an economic slowdown seen in recent years.

SM Prime currently has eight malls in China covering 1.6 million sqm. These are in Xiamen, Chengdu, Chongqing, Tianjin, Suzhou, Zibo, Jinjiang and Yangzhou. —Meg J. Adonis INQ