More malls drive SM Prime's 2018 net income to P32.2 billion
MANILA, Philippines – Property developer SM Prime Holdings reported a consolidated net income growth of 17% in 2018 to P32.2 billion on the back of its mall business expansion in key cities in the country.
In its regulatory filing on Monday, February 11, SM Prime said its mall revenues grew by 11% to P59.3 billion in 2018 from P53.2 billion in 2017.
Income from mall rent also grew by 11% to P50.5 billion from P45.3 billion.
The company attributed the growth to its mall expansion in key cities outside Metro Manila, such as SM CDO Downtown Premier, SM City Puerto Princesa, SM Center Tuguegarao Downtown, SM City Urdaneta Central, SM City Telabastagan, SM City Legazpi, and SM Center Ormoc.
Moviegoers also contributed much to SM Prime's growth, with cinema ticket sales climbing by 9% to P5.2 billion in 2018 from P4.8 billion in 2017.
There are currently 72 SM malls in the country and 7 malls in China. The company is set to launch 4 new malls in 2019: SM Center Dagupan, SM City Olongapo Central, SM City Butuan, and SM Mindpro Citimall in Zamboanga City.
More appetite for condominiums
SM Development Corporation (SMDC), which is under SM Prime, reported a revenue growth of 22% to P36.5 billion in 2018 from P30 billion in 2017.
SMDC attributed the growth to its projects launched in 2015 to 2017, including Shore 2 Residences, Coast Residences, Shore 3 Residences, and S Residences in Pasay City; Fame Residences in Mandaluyong City; and Spring Residences in Parañaque City.
Real estate sales also increased by 17% to P17.8 billion from P15.2 billion. Meanwhile, reservation sales climbed by 25% to P72.3 billion from P57.8 billion.
SMDC is showing no signs of slowing down as it is set to launch as many as 18,000 residential units in 2019 alone.
"Driven by our goal to deliver more innovative and sustainable lifestyle cities, SM Prime is aiming to sustain this growth trajectory in the coming years," SM Prime president Jeffrey Lim said. – Rappler.com