With the momentum of a remarkable 2023 backed by a substantial war chest of P100 billion this year, SM Prime Holdings Inc., an integrated property developer led by the Sy family, is strategically positioned to achieve robust growth throughout the year.

Committed to driving economic development, SM Prime president Jeffrey Lim affirmed the company’s mission to create groundbreaking and eco-friendly urban communities that offer modern lifestyles.

“We continue to see growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” Lim said.

Last year alone, SM Prime generated P40 billion in consolidated net income, a 33 percent jump from P30.1 billion in 2022 due to strong economic rebound post-pandemic.

Meanwhile, its consolidated revenues in 2023 clocked in at P128.1 billion, 21 percent greater than the previous year’s P105.8 billion.

Consolidated operating income, on the other hand, grew by 24 percent to P61.3 billion from P49.2 billion.

“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023,” Lim said.

Malls as main growth driver

SM Prime’s mall business, a significant driver of its financial success, has demonstrated remarkable growth.

As a result, this business segment is anticipated to consistently propel the company’s growth trajectory.

Last year, it accounted for 56 percent of the company’s consolidated revenues, a remarkable 30 percent increase from 2022 driven by a substantial rise in mall rental income, which surged by 24 percent to P61.3 billion, compared to P49.7 billion in the previous year.

The company’s malls continue to be a key driver of its overall success and a major source of revenue.

Meanwhile, SM Prime’s residential business group, led by SMDC, recorded an 8 percent growth in revenues to P43.1 billion in 2023 from P40.1 billion in 2022.

The residential group’s gross profit rose by 15 percent to P25.4 billion in 2023 from P22.1 billion in 2022.

Reservation sales, on the other hand, stood at P102 billion in 2023 — translating to more than 21,000 residential units sold in 2023.

Other key businesses

SM Prime’s other key businesses, which include offices, hotels and convention centers, reported P13.1 billion in revenues in 2023, a 26 percent increase from P10.3 billion in 2022.

The company’s office unit posted P6.8 billion in revenues, while the hotels and convention centers unit reached P6.3 billion in 2023.