SM Prime nets P8.3 billion in Q1

MANILA, Philippines — SM Prime Holdings recorded a consolidated net income of P8.3 billion in the first quarter, down five percent.

Consolidated revenue was three percent lower at P25.8 billion.

SM Prime, the country’s biggest mall operator, said the first quarter performance reflected the business disruption as a result of the coronavirus disease 2019 or COVID-19 pandemic.

“The company’s first quarter results reflect the business disruption impact of the quarantine measures implemented last March 16, which affected primarily our leasing businesses.

The residential segment has still shown strong growth in the first three months, abating the effect of revenue losses in the malls segment. The balance between our recurring and developmental income streams sustains our healthy financial position during this pandemic,” said SM Prime president Jeffrey Lim.

SM Prime’s mall business, which accounts for 47 percent of consolidated revenue, temporarily closed operations since the implementation of the enhanced community quarantine last March 15. As a result, Philippine mall revenue reached P11.3 billion.

The residential group, SM Development Corp., which accounts for 44 percent of the company’s consolidated revenues, recorded a 23 percent increase in revenue to P11.4 billion.

On preparations for business resumption, Lim said the company supports the government in rebuilding and pump priming the economy after the quarantine.

“Our topmost priority is still the safety of all our customers and people working under our developments. We ensure that proper safety measures are in place and will be implemented across all SM properties,” Lim said.