Strong mall revenues drive SM Prime’s net income

MANILA, Philippines – SM Prime Holdings Incorporated, the country’s leading integrated property company, saw its net income increase by 15% to P4.9 billion in the 3rd quarter of the year, from P4.2 billion posted in the same quarter a year ago. This was driven by the sustained growth of shopping mall and residential businesses.

Third quarter consolidated income also went up by 14% to P18.5 billion, from P16.3 billion in the same period a year ago, the company told the Philippine Stock Exchange on Monday, November 7.

“SM Prime sustained its overall performance as it benefited from the continued growth of the economy. The synergy and contribution of our business units are reflected in our strong results,” SM Prime president Jeffrey Lim said in the disclosure.

“We expect SM Prime’s success to continue over the medium term as economic growth spreads to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” Lim added.

The company’s strong 3rd quarter performance brought 9 months consolidated net income to P17.5 billion, an increase of 13%, from P15.5 billion in the same period last year.

Its 9-month revenues also improved by 11% to P57.8 billion.

SM Prime said mall revenues from Philippine operations went up by 9% to P32.1 billion in the first 9 months of the year, from P29.4 billion a year ago.

Meanwhile, its sales from its residential group led by SM Development Corporation grew by 10% to P18.7 billion in the first 9 months this year, from P16.9 billion in the same period a year ago.

SM Prime attributed the strong mall revenues to 7% growth in same mall sales, as well as new retail spaces of 1 million square meters (sqm) in gross floor area (GFA) that were added in the past two years.

Cinema and event ticket sales are at P3.44 billion, slightly higher than last year’s performance of P3.4 billion.

As of end-September 2016, SM Prime has 58 malls in the Philippines and 6 in China, with a GFA of 8.5 million sqm.

SM Prime is scheduled to open SM East Ortigas this December, while SM City Tianjin will open in phases towards the end of the year.

By the end of 2016, SM Prime will have a combined GFA of almost 9 million sqm.

Meanwhile, SM Prime said the residential group managed to register robust sales during the first 9 months of the year due to the sales take-up on ready for occupancy (RFO) units from various projects.

SMDC’s reservation sales jumped by 22% in term of sales value to P35.5 billion in the first 9 months of the year from P29.1 billion last year.

This is equivalent to a 20% increase in unit sales to 12,579 units from 10,520 units.

To date, SM Prime has launched 3 new projects and expanded its existing developments equivalent to 6,000 units in the cities of Las Piñas, Pasay, and Taguig.

SM Prime will also launch new and expanded housing projects in Quezon City, Pasay, Tagaytay, and Bulacan. – Rappler.com