SM Prime Holdings Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported a P14.4 billion consolidated net income in the first nine months of 2020, down by 48 percent from P27.6 billion in the same period last year.
Consolidated revenue reached P60.7 billion, 29 percent lower from P85 billion in the same being reviewed, it said in a disclosure to the Philippine Stock Exchange on Monday.
“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year. We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter. Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy,” SM prime president Jeffery Lim said.
In the first nine months of 2020, SM Prime’s Philippine mall business registered P18.3 billion revenue, 57 percent lower from last year’s P42.0 billion. While local malls’ rental income recorded P16.8 billion, 52 percent lower from P35.1 billion in the same period last year.
SM Prime’s residential business, led by SM Development Corp. (SMDC), recorded a seven percent increase in revenue in the first nine months of 2020 to P34.2 billion from P31.9 billion in the same period last year. Operating income, likewise, increased by 13 percent to P14.1 billion from P12.5 billion.
While reservation sales of SMDC reached P66.7 billion in the first three quarters of 2020, slightly higher from last year’s P66.4 billion.
With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units in its inventory while continuously offering its ready-for-occupancy units of 1,650 units, down from 2,292 units in the same period last year.
SM Prime’s commercial properties business reported P3.7 billion revenue in the first three quarters of the year, while the group’s operating income reached P3.3 billion.
Meanwhile, the company’s hotels and convention centers business segment registered P1.3 billion revenue for the first nine months of 2020 as it started to cater to a wider market with the easing of quarantine measures in key areas in the country.
“As we work together to bounce back from these challenges, SM Prime will stay committed to finding solutions to serve the ever-changing needs and aspirations of its customers, while providing growth to all our stakeholders and maintaining a safe and healthy environment for everyone,” Lim said.
SM Prime remains committed to being a catalyst for economic growth by delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life for millions of people, he added.