PROPERTY developer SM Prime Holdings Inc. reported a 13 percent rise in consolidated net income in the first nine months of the year driven by the growth of its key business segments.
In a disclosure to the Philippine Stock Exchange on Monday, SM Prime reported net income of P17.5 billion in the nine months from P15.5 billion posted in the same period last year.
It said overall revenues grew by 11 percent to P57.8 billion led by its key business segments, particularly rental operations and real estate sales.
For the third quarter alone, net income rose 15 percent to P4.9 billion from P4.2 billion a year ago, while overall revenues jumped 14 percent to P18.5 billion from P16.3 billion previously.
Revenue from the company’s malls in the Philippines grew 9 percent in the first nine months to P32.1 billion while revenues from its rental business climbed 11 percent to P26.9 billion.
“This was driven by a 7 percent growth in same-mall sales, as well as new retail spaces of 1 million square meters (sqm) in gross floor area (GFA) that were added in the past two years,” SM Prime said.
Cinema and event ticket sales amounted to P3.44 billion during the period, slightly higher than last year’s P3.4 billion, while revenues generated from amusement and merchandise sales were flat at P1.8 billion.
“Operating income increased by 10 percent to P17.8 billion from P16.1 billion in the same period last year as margins slightly improved to 55.3 percent from 54.9 percent,” the company said.
Revenue from its malls in China rose 5 percent from a year ago to P3.1 billion while operating income grew 6 percent to P1.5 billion.
SM Prime currently has 58 malls in the Philippines and six in China with a total GFA of 8.5 million square meters. It expects to have a combined GFA of almost 9 million square meters by the end of the year.
“SM Prime is scheduled to open SM East Ortigas this December while SM City Tianjin will open in phases towards the end of the year,” it said.
The residential group led by SM Development Corporation (SMDC) posted 10 percent revenue growth in the first nine months to P18.7 billion, accounting for 32 percent of the company’s consolidated revenues.
Operating income also grew by 10 percent to P5.1 billion from P4.6 billion a year ago.
“The growth was largely due to the sales take-up on ready for occupancy (RFO) units,” the company said.
SMDC also recorded a 22 percent jump in reservation sales in the nine-month period to P35.5 billion, which translates to a 20 percent increase in unit sales to 12,579 units.
During the period, SM Prime launched three new projects and expanded its existing developments, equivalent to 6,000 units, in the cities of Las Pinas, Pasay and Taguig.
“SM Prime is set to launch new and expanded housing projects in the cities of Quezon, Pasay, and Tagaytay. The launch also includes economic housing projects in the province of Bulacan,” it said.
The company’s Commercial Properties Group posted 44 percent revenue growth to P1.9 billion in the nine months, driven by the new rental revenues of FiveE-com Center.