SM Prime nets 15% more in Q3

MANILA, Philippines – SM Prime Holdings Inc. reported a 15 percent growth in net income in the third quarter to P4.9 billion.

Consolidated revenues went up 14 percent to P18.5 billion as a result of the sustained growth of its key business units – rental operations and real estate sales.

For the first nine months of the year, SM Prime’s net income rose 13 percent to P17.5 billion as revenues expanded by 11 percent to P57.8 billion.

SM Prime president Jeffrey Lim said the company sustained its overall performance as it benefited from the continued growth of the economy.

“We expect SM Prime’s success to continue over the medium-term as economic growth spreads to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” Lim said.

Aggregate Philippine mall revenues increased by nine percent to P32.1 billion while revenues from China rose five percent to P3.1 billion.

Operating income went up six percent to P1.5 billion, maintaining the previous year’s operating income margin of 49 percent.

SM Prime has 58 malls in the Philippines and six in China with a gross floor area of 8.5 million square meters.

It is scheduled to open SM East Ortigas this December while SM City Tianjin will open in phases towards the end of the year. By the end of 2016, SM Prime will have a combined GFA of almost nine million sqm.

To date, SM Prime has launched three new projects and expanded its existing developments equivalent to 6,000 units in the cities of Las Pinas, Pasay and Taguig.

The company is set to launch new and expanded housing projects in the cities of Quezon, Pasay, and Tagaytay. It will also build economic housing projects in the province of Bulacan.

SM Prime’s residential group led by SM Development Corp. contributed 32 percent to consolidated revenues and grew 10 percent to P18.7 billion.

The commercial properties group, which accounted for three percent of consolidated revenues, reported a 44 percent  growth in revenues to P1.9 billion.

The hotels and Convention centers, meanwhile, registered revenues of P2.1 billion or an increase of 23 percent.