SM Prime income up 16% to P8.8 B

MANILA, Philippines — SM Prime Holdings Inc. (SM Prime) reported a consolidated net income of P8.8 billion in the first quarter on sustained growth of its rental income and residential sales.

The first quarter net income reflected a growth of 16 percent from the P7.6 billion reported a year ago.

Consolidated revenue grew 14 percent to P26.5 billion. Similarly, operating income increased 17 percent to P13 billion, reflecting the strong performance of its different segments.

SM Prime president Jeffrey Lim said the growth in rental income and higher residential sales drove the company’s performance during the period.

“SM Prime continues to benefit from the overall growth of the Philippine economy that boosts the household income of most families. We are optimistic that we will sustain this performance this year as we continuously expand our core businesses in developing provincial cities across the country,” Lim said.

The company recorded an eight percent increase in revenue from the mall business to P15 billion.

For this year, SM Prime will open four new malls namely SM Center Dagupan in Pangasinan, SM City Olongapo Central in Zambales, SM City Butuan in the Caraga region and SM Citimall in Zamboanga.

On the other hand, residential arm SM Development Corp. (SMDC) grew its revenue by 23 percent to P9.2 billion. This accounted for 35 percent of the company’s consolidated revenue.

This was on the back of new projects such as Cheerful Residences, Green 2 Residences, Hope Residences, Charm Residences, Bloom Residences and the third phase of Trees Residences.

SMDC’s reservation sales increased 20 to P17.8 billion.

SM Prime is scheduled to launch 15,000 to 20,000 residential units across the company’s high-rise-building, mid-rise-building and single-detached house and lot projects this year.

Other businesses reported a consolidated revenue growth of 14 percent to P2.3 billion.

Other businesses include the Commercial Properties Group and Hotels and Convention Centers.

SM Prime’s Commercial Properties Group has 11 office buildings with a combined gross floor area of 642,000 square meter) while the Hotels and Convention Centers unit has a portfolio of six hotels with over 1,500 rooms, four convention centers and three trade halls as of the end of March.