SM Prime Holdings, Inc. reported a net income of P5.2 billion in the second quarter, growing by nearly 148% from P2.1 billion year on year as its malls business saw improved revenues despite the reimposition of quarantine classifications.

The company’s revenues from its Philippine malls segment grew by 55% to P4.8 billion in the second quarter from P3.1 billion last year.

“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,” SM Prime President Jeffrey C. Lim said in a statement on Monday.

In the first semester, the company generated a consolidated net income of P11.6 billion, 12% more than the P10.4 billion logged in the same period in 2020. Its consolidated revenues declined by six percent to P41.1 billion from P43.7 billion.

SM Development Corp. (SMDC) leads SM Prime’s residential segment, which accounts for 60% of the company’s consolidated revenues. SMDC saw an eight percent improvement in its operating income to P10.4 billion in the first half from P9.7 billion year on year.

Revenues for SMDC went up by three percent to P24.55 billion from P23.7 billion year on year. Net reservation sales in the six-month period rose by 30% to P55.1 billion from P42.4 billion.

“Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the national government,” the company said.

The company’s malls business made up for 26% of its consolidated revenues. Despite the segment’s improvement in the second quarter, its revenues for the first half declined by nearly 26% to P10.7 billion from last year’s P14.4 billion.

SM Prime said the re-implementation of enhanced community quarantine (ECQ) in the National Capital Region (NCR), Bulacan, Cavite, Laguna, and Rizal — the so-called NCR Plus bubble — from March to May 2021 had caused lower mall activities in these areas.

Meanwhile, revenues of SM Prime’s China malls rose by 50% to P3 billion in the first semester from P2 billion year on year.

“[Last year’s first-half] performance was affected by the pandemic lockdown in China during the first quarter of 2020 and the reported positive growth in the succeeding periods was due to the overall recovery of the economy,” said SM Prime.

Its other business segments such as offices, hotels, and convention centers contributed P3.1 billion to consolidated revenues.

SM Prime added 100 new rooms to its hotel portfolio upon the launch of the south wing of Park Inn by Radisson Clark in the first half.

Shares of SM Prime at the stock exchange went up by 2.7% or 85 centavos on Monday, closing at P32.30 each. — Keren Concepcion G. Valmonte