SM Prime reports net profit in 9 months, up 17%

SM Prime Holdings, Inc., one of the largest integrated property developers in Southeast Asia, reported a 17 percent growth in consolidated net income to 123.44 billion for the first nine months of 2018 from 120.05 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues went up by 15 percent to 174.56 billion from 164.69 billion of the same period being reviewed.

“SM Prime’s continuous growth as reflected in our first nine-month report shows the results of our strategic expansion in various developing cities in the country,” SM Prime President Jeffrey C. Lim said.

He added that, “through the solid performances of our core businesses, we are positive that we will deliver the net income growth we committed when we integrated five years ago.”

“We intend to keep this growth trajectory to enrich more lives in the communities that we serve and deliver more sustainable integrated developments for the betterment of our country,” noted Lim.

Consolidated mall revenues, which accounts for 58 percent of SM Prime’s nine-month total revenues, recorded a 12 percent increase to 143.26 billion from 138.58 billion last year.

Backed by the 8 percent samemall-sales growth, mall rental revenues went up by 12 percent to 136.83 billion from 132.83 billion. The growth is driven by the new malls opened from 2016 to 2018, which are mostly in the provinces.

The Company’s cinema and event ticket sales surged by 17 percent to 13.92 billion from 13.34 billion last year due to higher gross box office receipts from international and local blockbuster movies shown in 2018.

Other mall revenues, which include leisure, entertainment and merchandise sales, posted 12.51 billion, a 4 percent increase from the same period last year.

SM Prime’s residential group reported a 23 percent growth on its revenue for the first three quarters of the year to 125.26 billion from 120.50 billion in the same period last year.

The increase is primarily due to higher construction accomplishments of projects launched in 2015 to 2017 and continued increase in sales take-up of various projects.

SM Development Corporation (SMDC), the Company’s primary residential developer, recorded a 25 percent increase in reservation sales in the first nine months of the 2018 to 152.80 billion from the 142.08 billion reported last year.

SM Prime’s Commercial Properties Group (CPG) and SM Hotels and Convention Centers (SMHCC), posted a combined revenue growth of 7 percent in the first nine months of the year to 16.17 billion from 15.76 billion in the same period last year.