SM Prime builds up income to P5.8 B in Q1

MANILA, Philippines - SM Prime Holdings Inc. reported a core net income growth of 12 percent in the first quarter to P5.8 billion, driven by its massive expansion program.

Consolidated revenues rose 10 percent to P18.2 billion. Mall revenues, which accounted for 60 percent of the total, grew 11 percent to P11 billion.

“Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” said SM Prime president Hans Sy.

Growth came from new malls and expansion of existing malls last year such as SM Seaside City Cebu, SM City Cabanatuan, SM City San Mateo, SM Center Sangandaan and SM City Iloilo with a total gross floor area (GFA) of 738,000 square meters (sqm).

Excluding the new malls and expansions, same-store growth averaged seven percent.

SM Prime currently  has a total of 57 malls in the Philippines and six in China with total retail space of 8.4 million sqm. This includes the newly opened SM City San Jose del Monte in Bulacan, with a GFA of 101,000 sqm.

For this year, the company is on track to open four more malls -- SM City Trece Martires, SM City East Ortigas, Cherry SM Congressional and Cherry SM Antipolo.

SM Prime will also expand existing malls SM City Calamba and SM City Naga.

The residential group, on the other hand, contributed 32 percent of consolidated revenues or about P5.8 billion.  This was five percent more than the previous year.

The increase in revenues was attributed to higher construction accomplishments of SM Development Corp. These projects include Grass Residences, Shore Residences and Air Residences in the cities of Quezon, Pasay and Makati.

Sales take-up at M Place Residences, Field Residences and Jazz Residences in the cities of Quezon, Parañaque, and Makati also rose during the period.

 At present, SM Prime has 28 residential projects in Metro Manila and Tagaytay. It launched two new projects and an expansion of existing development equivalent to 4,000 units in Las Piñas, Bicutan and along Roxas Boulevard.