SM Prime income surges 16% on steady mall rental, residential sales
MANILA, Philippines – Boosted by its shopping mall and residential businesses, SM Prime Holdings Incorporated saw its net income surge by 16% to P5.66 billion in the 3rd quarter of 2017.
SM Prime told the Philippine Stock Exchange (PSE) on Monday, November 6, that its robust 3rd quarter performance pushed profits for the first 9 months of the year to P20.05 billion, up 15% from P17.45 billion in the same period last year. (READ: FAST FACTS: SM Investments Corporation)
The listed developer's 9-month consolidated revenues surged by 12% to P64.69 billion versus P57.78 billion, while overall operating income jumped by 16% to P30.14 billion from P25.87 billion.
SM Prime attributed the profit growth to higher rental revenues, steady improvement in same-mall-sales, and higher contribution from residential sales.
"SM Prime's performance in the 3rd quarter is a testament to the buoyant overall economy that benefits the whole property market. The timely expansion of our malls and launches of our residential projects in the provinces are positively contributing to the strong performance of our company," SM Prime president Jeffrey Lim said in the disclosure.
"Given all these, we remain optimistic that we are on track to meet our growth target this year," Lim added.
Mall revenues, which account for 60% of total revenues, climbed 10% from January to September this year to P38.58 billion on higher rentals, expansion of existing malls, and opening of new malls.
SM Prime has 65 shopping malls in the Philippines and 7 in China. (READ: Doing business under Duterte? Philippines' richest family shows how)
It plans to open SM Center Lemery in Batangas and SM Center Pulilan in Bulacan before 2017 ends.
Meanwhile, the group's residential business, which accounts for 32% of consolidated revenues, also booked 10% growth in sales to P20.5 billion from P18.66 billion.
The increase in sales take-up of ready-for-occupancy units as well as construction accomplishments of SM Development Corporation drove the revenues higher.
Reservation sales for the January to September period also increased by 18% to P42.08 billion from P35.52 billion, while unit sales increased by 3%, bringing it to 12,963 units from 12,579 units in the same period a year ago.
Other businesses, including hotels and convention centers as well as office developments, registered revenue growth of 39% to P5.76 billion in the first 9 months of the year from P4.13 billion last year.
At present, SM Prime has 6 office buildings with a combined gross floor area of 383,000 square meters, 6 hotels with over 1,500 rooms, 4 convention centers, and 3 trade halls in its portfolio. – Rappler.com