Upbeat retail, real estate lift SM Prime's profit
MANILA, Philippines – SM Prime Holdings Incorporated registered a core net income of P12.6 billion in the first half of 2016, up 12% from P11.2 billion the previous year, due to higher revenues from mall operations and residential development.
SM Prime, an integrated property company owned by the Sy family, told the Philippine Stock Exchange (PSE) that its first half consolidated revenues grew 9% to P39.2 billion.
Mall operations, which accounted for 60% of total revenues, went up by 9% to P23.6 billion from P21.7 billion in the previous year. (READ: Why Sy-led SMIC overtook MVP-led PLDT as PH's most valuable firm)
The residential group, which accounted for 34% of consolidated revenues, posted a 6% increase to P13.2 billion from P12.5 billion in the same period last year.
"SM Prime's integrated development program in the Philippines that is geared more towards provincial expansion sustained its financial performance in the first half of the year," SM Prime president Hans Sy said in a statement.
"SM Prime is well-positioned for higher growth given that the Philippines' economic upturn is starting to spread in the provinces," Sy added. (READ: Hans Sy retiring as SM Prime president)
Mall operations in China, which accounted for 9% of mall revenues, reached P2.1 billion in the first half of the year, up by 8% from P1.9 billion in the same period a year ago.
SM Prime has 58 malls in the Philippines and 6 in China, with a total gross floor area of 8.5 million square meters.
The company is scheduled to open two more malls this year – Cherry SM Congressional in Quezon City and SM City East Ortigas in Pasig City.
SM Prime is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna this year.
Meanwhile, SM Prime's residential group posted reservation sales of P22.6 billion for the first 6 months of the year, up 20% from a year ago.
It also posted an 18% increase in the number of units sold, with 8,091 units during the first half of 2016, from 6,868 units in the same period in 2015.
SM Prime's commercial properties group also recorded a 51% increase in revenues to P1.1 billion, boosted by the opening of SM Cyber West in Quezon City and Five E-Com Center in Pasay City. – Rappler.com