SM Prime profit tumbles by 52.7% as virus cripples mall operations

Property giant SM Prime Holdings saw a 52.7-percent drop in consolidated net profit last year to P18 billion as lockdown protocols prompted by the COVID-19 pandemic battered its flagship shopping mall business.

Consolidated revenues fell to P81.9 billion in 2020, as compared to P118.3 billion the previous year, SM Prime disclosed to the Philippine Stock Exchange on Monday.

This, as revenues from its Philippine mall business fell by 59 percent year-on-year to P23.6 billion. Rental income from local malls amounted to P21.8 billion last year, just 55 percent of the level seen in 2019.

“SM Prime remains committed in its effort to support the national government and other organizations to contain and combat the spread of COVID-19 in the country. As our core businesses slowly recover from the contraction brought about by community quarantines, our company will continue providing avenues that will further enhance and facilitate these collective efforts …,” said Jeffrey Lim, SM Prime president.

SM Prime’s residential business, led by SM Development Corp. (SMDC), posted a 6-percent revenue increase last year to P46.5 billion. Operating income also increased by 16 percent to P19.7 billion.

As an indicator of future growth, SMDC’s reservation sales grew by 10 percent to P99 billion last year. INQ