Property

Pandemic hampers SM Prime’s Q1 profit

Integrated property developer SM Prime Holdings Inc. reported a 21.7 percent drop in its first quarter earnings to P6.5 billion as it continued to reel from the disruptions caused by the Covid-19 pandemic.

Consolidated revenues declined by 19.4 percent to P20.8 billion.

Quarter-on-quarter, SM Prime’s net income was up nearly 80 percent from P3.6 billion in October to December 2020 due to the reopening of many businesses and increased mobility. Revenues, on the other hand, remained almost the same as the previous quarter.

“We welcomed 2021 with high hopes as most areas in the Philippines, including Metro Manila, were placed under GCQ in the first quarter of 2021. Along with the sustained growth of our residential business, our mall affiliates together with many of our SME-partners were able to reopen their shops, allowing our mall business segment to perform better,” SM Prime president Jeffrey C. Lim said.

The residential business under SM Dvelopment Cop. grew its revenues by 5% to P11.9 billion, accounting for 57% of the total. Operating income rose 9% to P5.1 billion while reservation sales expanded by 31% to P32.4 billion.

Revenues from domestic malls went up 10% to P5.9 billion due to the increase of operating mall tenants, driving mall rental income up by 14% to P5.6 billio/

The group’s China malls, meanwhile saw a 53% jump in revenues to RMB199 million.

SM Prime plans to launch three newmalls this year, namely SM City Daet in Camarines Norte,SM City Roxas in Capiz and SM City Grand Central in Caloocan City. These new malls, plus the expansion of the company’s existing malls, will provide an addition of almost 270,000 square meters of gross floor area in retail space.

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