New malls lift SM Prime’s 1st half profit
Leading integrated property firm SM Prime Holdings Inc. saw its earnings grow 14 percent in the first half to P14.39 billion on higher income from lease operations.
Aggregate revenue rose 10 percent to P43.25 billion while perating income expanded by 13 percent to P20.11 billion
“SM Prime’s performance in the first half of the year reflects a more balanced revenue and income streams from our various businesses including the growing contribution from our provincial operations.
We are happy to report that our investments in the provinces are now bearing fruits, particularly in mall operations given that these account for more than half of our Philippine malls portfolio. In the coming years, we are expecting a growing contribution from our residential group as we are launching more housing projects across the country,” said SM Prime president Jeffrey C. Lim.
Mall revenues, which contributed 60 percent of SM Prime’s total revenues, increased 10 percent to P25.68 billion. Lease operations accounted for P21.75 billion, up 10 percent year on year with the addition of 1.1 million square meters (sqm) gross floor area of retail spaces from new malls and expansions in 2015 to 2017.
SM Prime currently has 63 shopping malls in the Philippines and seven in China with a GFA of 7.8 million sqm and 1.3 million sqm, respectively. It is set to open Sm City Puerto Princesa in Palawan.
Revenues from the residential group rose five percent to P13.91 billion or 32 percent of groupwide revenues.
Recently launched projects continue to enjoy brisk sales, resulting in a 22 percent hike in reservation sales to P27.55 billion.