SM Prime 9-month income down by half

Shopping mall operator SM Prime Holdings Inc. on Monday said its income in the January-to-september period fell by half to P14.4 billion, from last year's P27.6 billion due to the economic fallout from the Covid-19 pandemic.

Revenues reached P60.7 billion for the period, 29 percent lower from P85 billion last year, the company said.

“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,” Jeffrey C. Lim, SM Prime president, said.

“We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter. Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy.”

For the nine- month period, SM Prime’s revenue from its domestic mall business reached P18.3 billion, 57 percent lower from last year’s P42 billion. Rental income accounted for P16.8 billion in revenues, down by more than half from P35.1 billion last year.

SM Pr ime’s residential business, led by SM Development Corp. (SMDC), recorded a 7- percent increase in revenue to P34.2 billion from P31.9 billion last year.

Operating income rose 13 percent to P14.1 billion from P12.5 billion.

Reservation sales reached P66.7 billion in the three quarters of the year, slightly higher from last year’s P66.4 billion. With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units in its inventory while offering its ready-foroccupancy units of 1,650 units, down from 2,292 units last year, it said.

SM Prime’s commercial properties reported revenue of P3.7 billion for the period, while the group’s operating income reached P3.3 billion. Meanwhile, the company’s hotels and convention centers business segment registered P1.3 billion in revenue for the period as it started to cater to a wider market with the easing of quarantine measures in key areas in the Philippines.

“As we work together to bounce back from these challenges, SM Prime will stay committed to finding solutions to serve the ever-changing needs and aspirations of its customers, while providing growth to all our stakeholders and maintaining a safe and healthy environment for everyone,” Lim said.