SM Prime income, revenues up 15% as economy reopens

PROPERTY developer SM Prime Holdings, Inc. reported on Tuesday that its consolidated net income grew 15% to P7.4 billion in the first quarter due to higher revenues.

“The significant improvement in mobility restrictions and the continuous reopening of the local economy in the first three months of 2022 have provided SM Prime further boost to expand its businesses and reach more customers through its integrated property developments,” SM Prime President Jeffrey C. Lim said.

First-quarter consolidated revenues likewise increased by 15% to P23.9 billion, while operating income grew by 17% to P10.1 billion.

SM Prime’s mall business reported a 40% growth in revenues to P8.2 billion. Rental income was also up by 34% to P7.6 billion.

“The easing of community quarantine levels in key areas in the country, which allowed more shops to operate,” SM Prime said.

The company’s cinema, event ticket sales, and other revenues increased by 172% to P600 million in the first quarter from P200 million.

Meanwhile, SM Prime’s residential business group, led by SM Development Corp., reported P12 billion in revenues, almost the same as the previous year.

Sales reached P31.1 billion, with no comparative figure given, mostly coming from vertical residential developments in Mandaluyong, Parañaque and Makati.

“Despite the sudden COVID-19 (coronavirus disease 2019) cases surge in January 2022, we were able to maintain our growth momentum in the succeeding months while prioritizing the health and safety of all our stakeholders. We remain optimistic this year as the government continues its efforts in containing the spread of COVID-19,” Mr. Lim added.

The firm’s other key businesses, which include offices, hotels, and convention centers, reported a 30% growth in revenues to P2 billion.

SM Prime has 76 malls in the Philippines and seven shopping malls in China. It also has 53 residential projects, 19 commercial projects, eight hotels, five convention centers and three trade halls.

The company owns Sky Ranch, an amusement park in Tagaytay City and within SM City Pampanga and SM City Baguio.

SM Prime shares were down by 1.99% or 70 centavos to close at P34.50 apiece on Tuesday. — Luisa Maria Jacinta C. Jocson