SM PRIME Holdings, Inc. posted a double-digit growth in its net income during the third quarter driven by the expansion of its residential business across the country.

The listed property developer said it booked a net income of P8.3 billion during the July to September period, jumping 22% from what it recorded in the year prior. Its revenues also grew 13% to P27.98 billion in the three-month period.

For the nine months to September, SM Prime’s consolidated net income rose 18% to P27.6 billion, as consolidated revenues increased 14% to P85.03 billion.

Much of the growth of the company came from its residential business segment led by SM Development Corp. (SMDC), which added P31.92 billion in revenues during the nine-month period to climb 26% from last year.

The company traced the improvement to its new projects in Pampanga, Cavite, Quezon City, Rizal and Parañaque City and to the fast take-up of its ready-for-occupancy projects located within the Mall of Asia complex in Pasay City and the central business district of Makati City.

Reservation sales during the period increased 26% to P66.42 billion, coming mostly from SMDC’s developments in Quezon City, Pasay City, Davao City and Iloilo City.

SM Prime’s mall business likewise delivered better performance in the first three quarters, recording a revenue of P42.03 billion to increase 8% from a year ago. SM Prime ended the period with 81 malls all over the world, 74 of which are located in the Philippines and seven are in China.

Ticket sales from cinemas and events during the nine-month period rose 6% to P4.14 billion, as other mall revenues jumped 17% to P2.75 billion. Mall operating income also climbed 9% to P23.95 billion as same-mall sales growth was sustained at 7%.

Other businesses, which include Commercial Properties Group and SM Hotels and Convention Centers, recorded a revenue improvement of 11% to P6.83 billion during the nine months.

“SM Prime’s recent developments and expansion programs in various progressive cities in the Philippines have contributed significantly to the Company’s strong performance in the first nine months of 2019,” SM Prime President Jeffrey C. Lim was quoted as saying in the statement.

“Our core businesses, led by the malls and residential segments, are set to sustain the strong performance as we approach the fourth quarter of the year,” he added.

SM Prime is allocating P80 billion for capital expenditures this year, of which 39% is intended for mall expansion efforts mostly in the provinces.

Shares in SM Prime increased 50 centavos or 1.28% to close at P39.50 apiece on Monday. — Denise A. Valdez