November 27, 2022

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SM Prime’s 9-month earnings rise as the economy recovers

2 min read

Shopping center operator SM Prime Holdings Inc. announced Monday that its January-September revenue rose 41 percent to P22 billion from P15.6 billion last year.

Consolidated revenue was P73.7 billion, up 30 percent from last year’s P56.8 billion. Consolidated operating income increased 61 percent to P34.6 billion from P21.6 billion last year.

For the third quarter alone, the company said its net income reached 7.9 billion pesos, almost doubling from P4 billion last year. Consolidated revenue for the third quarter reached P27.3 billion, up 74 percent from P15.7 billion last year, while consolidated operating income increased to P13.3 billion from P5.5 billion.

“We are pleased to report very encouraging third quarter results from our operations, consistent with improving local economies. With this, we are ready to proceed with our business plans to continuously create value for our stakeholders,” said Jeffrey Lim, President of SM Prime.

SM Prime’s revenue, which now accounts for 46 percent of the company’s consolidated revenue, grew to P33.9 billion in the three quarters of the year from P15.8 billion last year.

In July, SM Supermalls announced the resumption of full rental rates at its Philippine malls after more than two years of granting rental concessions to its tenants.

SM Prime’s local malls posted rental income of P30.4 billion, double the P15.2 billion last year. SM Prime’s cinemas, event ticket sales and other revenue increased to P3.5 billion from P600 million in the same period last year. SM Prime’s China mall business recorded RMB0.55 billion for the period, up 7 percent less than last year’s RMB0.59 billion.

SM Development Corp. (SMDC)-led retail business group of SM Prime reported revenue of Ptas 10.1 billion in the third quarter, up 32 percent from Ptas 7.6 billion a year earlier. This accounted for the residential business segment’s nine-month sales of P28.3 billion, down 12 percent from last year’s P32.1 billion.

SMDC’s July-September reservations revenue increased 15 percent to P24.5 billion from P21.2 billion a year ago. This increase has brought SMDC’s reservation revenue to P83.9 billion for the three quarters, up 10 percent from P76.3 billion a year ago.

SM Prime’s other key businesses, which include offices, hotels and convention centers, generated P7.2 billion in revenue for the January-September period, up 56 percent from P4.6 billion last year.

The company’s office business segment generated revenue of P4.4 billion, up 17 percent from last year’s P3.8 billion, while revenue of the hotel and convention center business segment reached P2.8 billion, triple from P900 million last year.

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