SM Prime says income climbs 33% to P40B

SY-LED property developer SM Prime Holdings, Inc. logged a 33% increase in its net income to P40 billion in 2023, led by higher revenues across its business units.

The company’s net income for 2023 marks an improvement from the P30.1 billion recorded the year prior, SM Prime said in a stock exchange disclosure on Monday.

SM Prime said its consolidated revenue increased by 21% to P128.1 billion from P105.8 billion in 2022, while operating income rose by 24% to P61.3 billion.

The company’s mall business, which took up 56% of its consolidated revenue, posted a 30% revenue growth to P71.9 billion, as mall rental income climbed by 24% to P61.3 billion.

The residential business group, led by SM Development Corp., recorded an 8% increase in revenue to P43.1 billion.

The group’s gross profit grew by 15% to P25.4 billion while reservation sales stood at P102 billion, equivalent to over 21,000 residential units sold.

Meanwhile, SM Prime said its revenues for other key businesses, including offices, hotels, and convention centers, rose by 26% to P13.1 billion.

Broken down, the company’s office unit generated P6.8 billion, while the hotels and convention centers unit had P6.3 billion in revenue.

“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023,” SM Prime President Jeffrey C. Lim said.

“We continue to see this growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” he added.

The property developer previously said that it was looking at a P100-billion capital expenditure program for this year.

SM Prime shares fell by 2.79% or 95 centavos to P33.05 apiece on Monday.