MANILA – Property conglomerate SM Prime Holdings Inc. (SM Prime) on Monday said its profit grew 16 percent last year on the strong performance of its malls and residential businesses.
SM Prime told the local bourse its net income reached PHP27.6 billion in 2017 from PHP23.8 billion the previous year.
Consolidated revenues rose 14 percent year-on-year to PHP90.9 billion from PHP79.8 billion.
“SM Prime continues to benefit from the sustained overall economic progress of the Philippines that resulted to higher spending power for most Filipino families. This translated to consistent growth of our key businesses that include higher rental revenues of our malls, increased residential units sales and growing contribution of our other business segments,” said SM Prime President Jeffrey Lim.
SM Prime’s mall revenues, which contributed 58 percent to total revenues, increased by 9 percent to PHP53.2 billion in 2017 from PHP48.6 billion the previous year.
Rent income reached PHP45.2 billion last year, up 11 percent from PHP41 billion in 2016.
The conglomerate attributed higher revenue to rising contribution of rentals from new and expanded malls that were launched during the last two years.
SM Prime has 67 malls in the Philippines offering 8 million square meters (sqm) of gross floor area (GFA), and seven malls in China with 1.3 sqm of GFA at the end of 2017.
SM Prime’s residential group, led by SM Development Corp., posted a revenue growth of 18 percent to PHP30 billion in 2017 from PHP25.4 billion in 2016.
It attributed growth to higher construction accomplishments of projects launched in 2013 to 2016, as well as continued increase in sales take-up of ready for occupancy units.
The rest of SM Prime’s businesses booked a revenue growth of 32 percent to PHP7.9 billion in 2017 from PHP6 billion the previous year.
The commercial properties and the hotels and convention centers business segments contributed to a revenue growth of 12 percent and 49 percent, respectively, in 2017.
To date, SM Prime has seven office buildings with a combined GFA of 456,000 sqm.
ThreeECom and FourE-Com Centers in the Mall of Asia Complex, Pasay City, which are set to be completed this 2018 and in 2020, will add a combined GFA of almost 320,000 sqm to the company’s office portfolio.
The hotels and convention centers unit currently has six hotels with over 1,500 rooms, four convention centers and three trade halls.
Residences accounted for a share of 33 percent in SM Prime’s total revenues in 2017, while other business segments contributed 9 percent.
