SM Prime reports 35% jump in net income to P10.7 billion

LISTED property developer SM Prime Holdings, Inc. posted a 35% increase in its consolidated net income on the back of higher revenues.

In a regulatory filing on Monday, SM Prime said its consolidated net income for the July-to-September period rose to P10.7 billion from P7.9 billion last year. 

The company’s third-quarter consolidated revenues increased 20% to P32.7 billion from P27.3 billion last year, while its consolidated operating income climbed 17% to P15.6 billion from P13.3 billion.

For the three quarters to September, SM Prime said it logged a 37% increase in its consolidated net income to P30.1 billion from P22 billion a year ago, led by higher revenues from its mall and residential businesses.

The company’s consolidated revenues from January to September rose 26% to P92.6 billion from P73.7 billion, while its consolidated operating income increased 29% to P44.5 billion.

SM Prime said its mall business, which took up 57% of total consolidated revenues, posted a 37% increase in revenue to P52.5 billion from P38.2 billion last year.

The property developer disclosed that its mall rental income rose 29% to P44.8 billion from P34.7 billion while its cinemas, event ticket sales, and other revenues increased 120% to P7.7 billion from P3.5 billion.

SM Prime’s primary residential business, led by SM Development Corp. (SMDC), posted a 10% increase in its nine-month revenue to P28.7 billion from P26.1 billion.

For the third quarter alone, SM Prime’s primary residential business recorded a 20% increase in its revenue to P11.1 billion from P9.3 billion.

“SMDC’s reservation sales reached P89.3 billion in first three quarters of 2023, 6% higher than last year’s P83.9 billion,” SM Prime said.

SM Prime’s other businesses such as offices, hotels, and convention centers recorded a 33% growth in nine-month revenues to P9.5 billion from P7.2 billion. 

The company’s office business segment logged P4.9 billion in revenues, 14% higher than last year, while the hotels and convention centers business segment’s revenues totaled P4.6 billion, 64% higher than a year ago.

“Our strategic operations over the past months provided us remarkable results this quarter, which we expect to lead us to a stronger full-year performance. I would like to thank our customers and partners for their continued support that aim to deliver convenience and comfort to everyone,” SM Prime President Jeffrey C. Lim said.

Shares of SM Prime at the local bourse rose 60 centavos or 1.97% to P31 each on Monday. — Revin MIkhael D. Ochave