SM Prime profit hits P37B on mall gains

The Sy family’s SM Prime Holdings Inc. (SM Prime) posted a nine-month net income of P37.2 billion, up 10 percent from P33.9 billion a year earlier, fueled by strong mall and convention center performance.

“Our malls remain strong anchors for growth,” SM Prime president Jeffrey C. Lim said Monday. “Their performance was driven by regional expansion, the upgrading of flagship malls, and the introduction of more experiential retail and dining concepts.”

Total revenues

Total revenues from January to September rose 4 percent to P103.4 billion from P99.8 billion. Malls accounted for 59 percent of revenues, increasing 7 percent to P61.0 billion on the back of added leasable space and tenants.

The residential segment contributed over 31 percent of total revenues but dipped 2 percent to P32.6 billion due to slower revenue recognition from mid-segment developments.

Hotels and Convention Centers grew 9 percent to P6.0 billion, driven by higher MICE bookings, while offices and warehouses remained steady at P4.0 billion amid temporary tenant relocations.

“The residential and office segments were tempered by macroeconomic conditions, but recovery initiatives are underway,” Lim added.

Capex

Capital expenditures reached P59.3 billion in the first nine months, up 11 percent from last year, focused on mall and residential projects.