SM Prime earnings rise 27% in Q1

MANILA, Philippines — SM Prime Holdings Inc., the property developer of the Sy Group, reported a consolidated net income of P9.4 billion in the first quarter of the year, up 27 percent from the P7.4 billion recorded a year ago.

The company raked in consolidated revenues of P28.7 billion, up 20 percent from the P23.9 billion recorded a year ago.

Similarly, consolidated operating income rose by 30 percent to P13.9 billion.

Accounting for 54 percent of revenues, SM Prime’s Philippine mall business recorded an 88 percent increase in revenues to P15.4 billion during the period.

Rental income from SM Prime’s local malls soared by 72 percent to P13 billion due to increase in tenant sales and foot traffic, as well as full charging of rental fees that the company implemented since the second half of 2022.

On the other hand, SM Prime’s residential business group, led by SM Development Corp. posted P8.5 billion in revenues, down 29 percent from last year’s P12 billion.

“The reported decrease in revenue is still partly due to canceled sales as an effect of high inflation, rising domestic interest rates, and the lapse of the Bayanihan Law,” SM Prime said.

However, SM Prime noted that cancellations have eased in the first quarter this year.

Revenues from SM Prime’s other key businesses, which include offices, hotels, and convention centers, reached P3.2 billion in the first quarter, 59 percent higher than the P2 billion recorded in the first quarter of 2022.

SM Prime’s office business segment registered P1.7 billion revenues, 25 percent higher than the P1.4 billion recorded in the same period last year.

Likewise, the group’s hotels and convention centers, recorded a 129 percent jump in revenues to P1.5 billion as tourism and travel recovered and the economy fully opened.