Sy family-led integrated property developer SM Prime Holdings Inc. saw its earnings surge 11 percent to P10.5 billion in the first quarter of 2024 from P9.4 billion a year ago as its mall and residential business continued to chart growth.
The company said on Monday that bottom line growth was driven by a seven percent increase in consolidated revenues, which clocked in at P30.7 billion from P28.6 billion a year ago.
Consolidated operating income likewise grew by six percent to P14.7 billion as of the end of March, from P13.8 billion in 2023.
Encouraging Q1 performance
“We are encouraged with the performance of all our businesses this first quarter of 2024,” said SM Prime president Jeffrey C. Lim. “We are particularly bullish with our malls business as we plan to open a new mall this month of May, and another three within the year.”
Added Lim, “For the residential business, our focus remains in addressing housing backlog within the socialized and economic segments.”
SM Prime’s mall business, which contributed 59 percent of the consolidated revenues, saw a seven percent growth in the first quarter, reaching P18.2 billion.
Mall rental income accounted for P15.8 billion, reflecting an eight percent increase compared to the same period in the previous year.
Other revenues
Additionally, other revenues, including cinema and event ticket sales, amounted to P2.5 billion last year.
SM Prime’s residential business posted P8.5 billion in revenues, up 10 percent from the P7.7 billion recorded in the same period of the previous year.
The growth contributed to 28 percent of the company’s consolidated revenues during the quarter. Additionally, the company secured reservation sales of P26.5 billion as of end-March.
Meanwhile, SM Prime’s enterprises other than retail, including offices, hotels, and convention centers, collectively experienced nine percent growth, generating P3.4 billion in revenue.
Among these segments, the company’s office business unit contributed P1.8 billion, while hotels and convention centers together gained P1.6 billion in revenue.
