SM Prime soars to record profits in 2024
From bustling malls and thriving residential projects to expanding hotel operations and office spaces, the company saw strong momentum across-the-board, pushing its consolidated net income to an all-time high of P45.6 billion, a 14 percent increase from P40 billion in 2023
SM Prime Holdings Inc. (SM Prime), an integrated property developer led by the Sy family, ended 2024 on a high note, with all its business segments contributing to a record-breaking year.
From bustling malls and thriving residential projects to expanding hotel operations and office spaces, the company saw strong momentum across the board, pushing its consolidated net income to an all-time high of P45.6 billion, a 14 percent increase from P40 billion in 2023.
In a stock exchange report on Monday, SM Prime said its consolidated revenues also hit a record P140.4 billion, up 10 percent from P128.1 billion, driven by higher rental income, real estate sales and earnings from services and experiential offerings.
Malls
Malls continued to be the largest revenue driver at 55 percent, followed by residential developments at 34 percent, hotels and convention centers at 6 percent and offices and warehouses at 5 percent.
“The results we achieved in 2024 provide a solid foundation for future growth. We have several key projects in development that we expect will benefit from this positive momentum,” SM Prime president Jeffrey C. Lim said.
Notably, SM Prime capped the year with its strongest fourth-quarter performance, as revenues surged 14 percent to P40.6 billion from P35.5 billion, while net income rose 19 percent to P11.8 billion from P9.9 billion.
Holiday spending
The robust results were fueled by strong holiday spending, the opening of two new malls, higher real estate sales and blockbuster film releases.
SM Prime earmarked up to P33 billion this year to expand its commercial property portfolio. The majority of the budget, about P21 billion, will be allocated for the expansion and redevelopment of its mall network — a move expected to benefit Filipino mall-goers.
The company plans to add 205,400 square meters of gross floor area (GFA) through new developments, while 124,488 square meters of existing space will undergo renovation.
By year-end, SM Prime’s total mall GFA is projected to reach 8.08 million square meters.
With 87 shopping malls nationwide, SM Prime aims to capitalize on the expected surge in consumer confidence and foot traffic.