SM Prime posts 13% hike in Q1 profit

MANILA, Philippines - SM Prime Holdings Inc. grew its net income by 13 percent to P6.6 billion in the first quarter of the year as mall expansions continued and real estate sales remained robust.

Consolidated revenues went up 12 percent to P20.5 billion.

“Our strong performance in the first quarter gives us high confidence that we are on track to meet our growth targets in terms of revenues and income for the full year. As we continue our strategic rollout of projects across our properties, we are optimistic that our growth will be sustained by the overall expansion of the Philippine economy,” said SM Prime president Jeffrey Lim.

Operating income increased 14 percent to P9.6 billion on higher rental revenues.

Mall revenues grew 11 percent to P12.7 billion or 62 percent of consolidated revenues rentals rose 10 percent to P10.7 billion with 1.1 million square meters of gross floor area added since 2015.

At present, SM Prime has 60 shopping malls in the Philippines and seven in China.

This year, the company will open five new malls in the Philippines – SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan, and SM Center Lemery in Batangas.

SM Prime will have 65 malls in the Philippines and seven in China by the end of this year.

Meanwhile, the residential segment grew its revenues by six percent to P6 billion, contributing 29 percent to overall revenues. Reservation sales jumped 52 percent to P12.3 billion.

For 2017, SM Prime is scheduled to launch 15,000 to 18,000 residential units that include high rise, mid-rise and single detached housing. These projects will be located in Metro Manila and other key cities in the provinces.

The Commercial Properties Group, meanwhile, contributed P749 million or four percent of the total.

Revenues from the hotels business, through SM Prime’s Hotels and Convention Centers, surged 82 percent to P1.1 billion in the first quarter from its current portfolio of six hotels with over 1,500 rooms, four convention centers and three trade halls.