SM Prime posts P7.6B Q1 profit on steady mall rental and residential sales
Property giant SM Prime Holdings Inc. grew its net income by 15 percent in the first quarter to P7.6 billion on higher earnings from the shopping mall and residential development businesses.
Consolidated revenues expanded by 14 percent to P23.4 billion while operating income went up 16 percent to P11.1 billion.
The shopping center business chalked up revenues of P13.9 billion, representing a 10 percent increase year on year and 59 percent of group-wide revenues.
Revenues from leasing operations increased by 12 percent to P11.9 billion, largely driven by new malls that opened in 2016 and 2017.
“The growing revenue contribution of our mall operations in the provinces and increasing reservation sales of our residential projects in Metro Manila drove our bottom line higher and kept us in line with our first quarter target in 2018. Nevertheless, we plan to continue expanding in key cities all over the Philippines to sustain our growth targets over the next few years,” said SM Prime President Jeffrey Lim.
Revenues from the residential group under SM Development Corp., climbed 25 percent to P7.5 billion on double digit growth in real estate sales as more projects were turned over to buyers.
SMDC’s reservation sales grew 20 percent to P14.8 billion.