Sy-led property giant SM Prime Holdings Inc. saw a 13-percent increase in net income last year on strong rentals from its malls and office buildings as well as robust residential sales.
In a statement, SM Prime said it booked P18.4 billion consolidated net income last year from P16.72 billion in 2013, while consolidated revenues advanced 11 percent to P66.2 billion from P59.79 billion previously.
“The encouraging financial performance in 2014 reiterates that the transformation of SM Prime into a property conglomerate is bearing fruits and trending above management expectations,” SM Prime president Hans T. Sy said.
“We expect this performance to be surpassed this year as the company pursues its 2015 expansion plans with the opening of four new malls, the completion of FiveE-comCenter and the launch of five new housing projects. This is to complement the expansion of existing malls and ongoing construction of high-rise residential development projects,” he added.
Revenue contributors were rental sales from retail malls and commercial office spaces (55 percent), residential take-up (33 percent), as well as cinemas and amusement earnings (12 percent).
Rental sales from leasing of mall and office spaces increased by 13 percent to P36.5 billion from P32.2 billion on the back of strong same store sales, new mall openings and expansion of existing malls, and the growth in Two E-Com Center within the 62-hectare Mall of Asia complex.
Real estate residential sales inched up 7 percent to P22.2 billion from P20.78 billion in 2013 on a boost in reservation sales.
Cinema tickets netted P4.3 billion last year, an increase of 14 percent from the previous year, on the solid performance of same store cinema sales and the addition of digital cinemas in newly opened malls and existing ones. Amusement and other revenues also grew by 8 percent to P3.3 billion on an increase in amusement rides at the Tagaytay SkyRanch and SM MOA’s amusement park by the bay.