HENRY Sy-led SM Prime Holdings, Inc. said on Monday its net income for the third quarter increased 16 percent to P5.66 billion as “the buoyant overall economy” had boosted rental income and mall sales.
The profit growth in the third quarter led to a 15 percent rise in net income for the first nine months to P20.05 billion from the P17.45 billion recorded a year ago.
Consolidated revenues in the third quarter reached P64.69 billion, up 12 percent from last year, while overall operating income expanded 16 percent to P30.14 billion.
It said the growth in revenues was due to additional rental revenues from the company’s mall expansions, consistent improvement in same-mall sales and higher contribution from residential sales.
“SM Prime’s performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market. The timely expansion of our malls and launches of our residential projects in the provinces are positively contributing to the strong performance of our Company,” SM Prime President Jeffrey Lim told the Philippine Stock Exchange.
“Given all these, we remain optimistic that we are on track to meet our growth target this year,” he added.
Mall revenues grew 10 percent to P38.58 billion and accounted for 60 percent of the consolidated revenues in the first nine months.
Residential group revenues also grew by 10 percent to P20.50 billion in the first nine months and accounted for 32 percent of the consolidated revenues.
“The increase in sales take-up of ready-for- occupancy (RFO) units and construction accomplishments of SM Development Corporation (SMDC) drove the revenues higher. These revenues mostly came from Shore 2 Residences in Pasay City, Air Residences in Makati City, Fame Residences in Mandaluyong City, Trees Residences in Quezon City, Grass Residences in Quezon City and S Residences in Pasay City,” SM Prime said.
Meanwhile, the rest of SM Prime’s businesses, which accounted for 8 percent of consolidated revenues, posted revenue growth of 39 percent to P5.76 billion in the first nine months.
The growth came from rental revenues of FiveE-comCenter and Conrad Manila, which were launched in November 2015 and June 2016, respectively, the company said.