SM Prime income up 12% in H1

MANILA, Philippines — SM Prime Holdings Inc., the Sy-owned property developer, reported a net income of P11.6 billion in the first half of the year, up 12 percent from P10.4 billion a year ago despite lower revenues.

First half consolidated revenue declined by six percent to P41.1 billion.

Second quarter net income rose to P5.2 billion from P2.1 billion a year ago.

SM Prime president Jeffrey Lim said the reported improvement in the first half is due to the continued positive performance of the company’s residential business, as well as the company’s malls business in the second quarter despite the effect of the reimplementation of stricter community quarantine from March to May in key areas such as Metro Manila and nearby provinces.

“In these challenging times, we are committed more in providing a safe environment to all our stakeholders by strict observance of health and safety protocols across all our developments. Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide, as well as providing free inoculation to thousands of our employees,” Lim said.

The company noted improvements in both residential and mall businesses during the period despite stricter quarantine from March to May 2021.

SM Prime’s residential business, which accounted for 60 percent of SM Prime’s consolidated revenues and led by SM Development Corp. (SMDC), registered a three percent increase in revenue to P24.5 billion from P23.7 billion a year ago.

The residential business’ operating income improved by eight percent, registering P10.4 billion in the first half of 2021 from P9.7 billion a year ago.

SM Prime’s Philippine malls business, which accounts for 26 percent of consolidated revenues, recorded first half revenue of P10.7 billion as compared to P14.4 billion a year ago.

The company’s China malls business alone, recorded a 48 percent growth in revenues to P3 billion during the period from P2 billion a year ago because of the pandemic lockdown in the first quarter last year.

SM Prime’s other business segments, which include offices and hotels, and convention centers, contributed P3.1 billion to the company’s consolidated revenues.