Property

SM Prime 9-month profit down amid pandemic

Integrated property developer SM Prime Holdings Inc. reported a 48% drop in its nine month profit to P14.4 billion as mall operations have been severely dented by the Covid-19 pandemic.

Consolidated revenue amounted to P60.7 billion, down 29% as the group’s local mall business suffered a 57% decline in revenue to P18.3 billion. Rental income dived by 52% to P16.8 billion.

“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year. We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter,”said Jeffrey C. Lim, president of SM Prime.

The residential business, on the other hand, continued to show strength. SM Development Corp. (SMDC) chalked up a 7% hike in revenue to P34.2 billion while its operating income rose 13% to P14.1billion. Reservation sales slightly went up to P66.7 billion.

With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units to its inventory while continuously offering its ready-for-occupancy units.

The commercial properties business registered P3.7 billion in revenue while the hotel sand convention centers segment pumped in P1.3 billion in revenues as the group started to cater to wider market with the easing of quarantine measures in key areas in the country.

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