MANILA, Philippines – SM Prime Holdings recorded a net income of P8.3 billion in the 1st quarter of 2020, 5% lower than the P8.8 billion recorded in the same quarter last year, as the coronavirus crisis disrupted operations.

In a disclosure to the Philippine Stock Exchange on Friday, May 15, SM Prime said revenues fell by 3% to P25.8 billion.

“The company’s 1st quarter results reflect the business disruption impact of the quarantine measures implemented last March 16, which affected primarily our leasing businesses,” said SM Prime president Jeffrey Lim.

Its mall business, which accounted for 47% of consolidated revenues, was temporarily closed due to the pandemic. (READ: Safety measures, rules as malls reopen on May 16)

SM Prime waived some P8.8 billion in mall rentals during the closure. 

Revenues from malls still hit P11.3 billion from January to March, 16% lower than the P13.5 billion in the same period last year.

Its residential unit, SM Development Corporation, recorded a 23% increase in revenues to P11.4 billion.

SM Prime said it will maintain its capital expenditures for 2020 at P80 billion.

“We believe that in [a] crisis like this, flight to quality will be the driver for consumers and buyers, and SM has the solution and right product,” said SM Prime chairman of the board Henry Sy Jr. – Rappler.com