Shopping mall income boosts SM Prime’s Q3 profit
SM Prime Holdings Inc. saw a 16 percent jump in its third quarter profit to P5.66 billion, driven by additional revenues from new malls, steady improvement in same mall sales and higher contributions from the residential segment.
This brings SM Prime’s nine-month earnings to P20.05 billion or an increase of 15 percent year on year as consolidated revenue rose 12 percent to P64.69 billion and operating income grew 16 percent to P30.14 billion.
“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. Given all these, we remain optimistic that we are on track to meet our growth target this year,” said Jeffrey C. Lim, president of SM Prime.
Revenues from mall operations amounted to P38.58 billion, 10 percent higher than the previous year. SM Prime has 65 malls in the Philippines and seven in China with a gross floor area of eight million square meters and 1.3 million sqm, respectively.
The company will open two more malls — SM Center Lemery in Batangas and SM Center Pulilan in Bulacan, before the end of the year.
The residential group, on the other hand, registered a 10 percent increase in revenues to P20.5 billion or 32 percent of the total revenues. The growth was attributed to the strong take-up of ready-for- occupancy units 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.
Reservation sales expanded by 18 percent to P42.08 billion while the number of units sold increased three percent to to 12,963 units.