SM Prime earnings up 18% in 9 months

MANILA, Philippines — SM Prime Holdings Inc. continued to post strong double-digit growth over the first nine  months this year.

The company reported an 18 percent growth in net income to P27.6 billion in January to September as consolidated revenue rose 14 percent to P85.03 billion.

SM Prime President Jeffrey C. Lim said new developments including expansion programs in different progressive cities in the Philippines have contributed significantly to the company’s strong performance.

In the third quarter alone, the company posted net income of P8.3 billion, up 22 percent year on year. Revenue grew 13 percent to P27.98 billion.

Lim expects the company to sustain its growth in the fourth quarter.

“Our core businesses, led by the malls and residential segments, are set to sustain the strong performance as we approach the fourth quarter of the year,” Lim said.

The mall business continued to grow even as the growth of online shopping has been affecting brick and mortal malls across the globe.

SM Prime’s Philippine mall revenue grew eight percent to P42.03 billion.

At present, SM Prime has 81 malls  – 74 in the Philippines and seven in China.  The company opened SM City Olongapo Central during the third quarter and SM Center Dagupan last October.

SM Prime’s residential business segment, led by SM Development Corp. (SMDC), also saw an improvement, accounting for 38 percent of the  consolidated revenues.

SMDC reported a 26 percent growth in revenue in the first three quarters to P31.92 billion.

Meanwhile, the commercial properties Group (CPG) and SM Hotels and Convention Centers (SMHCC) posted a combined revenue growth of 11 percent to P6.83 billion and 16 percent hike in operating income to P3.36 bilion.

At present, SM Prime operates 12 office buildings with a total gross floor area of more than 662,000 sqm., including the recently launched NU – Mall of Asia (NUMA) in the Mall of Asia Complex in Pasay City.

It also has a portfolio of eight hotels with over 1,900 rooms.