SM Prime earns P21.8B, up 21%

SM PRIME Holdings, Inc. posted a 21% increase in consolidated net income last year to P21.8 billion, the property developer reported on Monday, saying it sees “recovery in the horizon” after the challenges in the past two years.

In its disclosure to the exchange, the company also said it generated a P6.2-billion consolidated net income in the fourth quarter, without giving a comparative figure, as revenues grew 20%.

“As we begin to see the result of joint effort by the government and private organizations to manage the pandemic, SM Prime is set to pursue business expansions with broader funding options available locally and internationally,” SM Prime President Jeffrey C. Lim said.

“We will continue to work with the government in helping the nation rebound from the challenges in the past two years,” he added.

Consolidated revenues for the October-to-December period amounted to P25.5 billion from P21.2 billion year on year. The company also recorded a 67% operating income growth to P10.8 billion from P6.5 billion previously.

For 2021, SM Prime’s consolidated operating income grew 11% to P32.4 billion in from P29.1 billion a year earlier.

Its residential business led by SM Development Corp. (SMDC) logged P45.9-billion revenues, while its sales take-up reached P98.9 billion in 2021.

SMDC was able to launch eight projects in 2021. These include high-rise and mid-rise condominium developments and house and lot residential projects.

In Metro Manila, SMDC launched Sands Residences in Manila, Ice Tower in Pasay, Gold Residences in Parañaque, and Twin Residences in Las Piñas. Meanwhile, the company launched Joy Residences in Bulacan, Cheerful Homes 2 in Pampanga, Calm Residences in Laguna, and Glade Residences in Iloilo.

SM Prime’s Philippine mall business benefited from the easing of mobility restrictions beginning November. The company generated P24.1 billion in revenues from its local malls in 2021, inching up 2% from P23.6 billion in 2020.

Rent income from its Philippine malls also grew to P23 billion, 6% more than the P21.8 billion logged in 2020.

SM Prime opened two new malls last year, SM City Daet in Camarines Norte and SM City Grand Central in Caloocan City. The company also launched MOA Square, which currently houses IKEA Philippines.

Overseas, SM Prime China malls logged a net income of 200 million renminbi (RMB), up 154% from last year’s RMB100 million. Its international mall business recorded RMB800 million in 2021, 20% more than the RMB700 million the previous year.

SM Prime’s offices, hotels, and convention centers “remained resilient” in 2021, posting a 4% growth in consolidated revenues to P6.6 billion. Meanwhile, revenues from its commercial properties grew 5% to P5 billion and the hotels and convention centers business segment booked P1.6 billion in revenues.

The company launched Park Inn by Radisson-Bacolod in the fourth quarter.

SM Prime shares on the stock market climbed 4.45% or P1.70 to close at P39.90 each on Monday. — Keren Concepcion G. Valmonte