SM Prime income soars 33% to P40B

SY-LED SM Prime Holdings Inc. (SM Prime) on Monday reported netting P40 billion last year, up 33 percent from the P30.1 billion recorded a year earlier and said to have been driven by double-digit revenue growth.

Consolidated revenues expanded by 21 percent to P128.1 billion from P105.8 billion, while total operating income rose 24 percent to P61.3 billion from P49.2 billion in 2022.

“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 Lim said in a statement.

“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 mall business was a key profit driver, accounting for 56 percent of total revenues. Mall revenue grew 30 percent to P71.9 billion from P55.4 billion in 2022.

Mall rentals alone generated revenue of P61.3 billion, up 24 percent from the previous year’s P49.7 billion.

The residential business, led by SM Development Corp., saw revenues rise by 8.0 percent to P43.1 billion from P40.1 billion, resulting in a gross profit of P25.4 billion, up 15 percent from P22.1 billion previously.

Reservation sales reached P102 billion, translating to over 21,000 residential units sold last year.

SM Prime — described as “one of the leading integrated property developers in Southeast Asia” — said that its other key businesses, including offices, hotels and convention centers, delivered a 26-percent revenue expansion last year to P13.1 billion from P10.3 billion.

The office unit was said to have recorded P6.8 billion in revenues, while hotels and convention centers contributed P6.3 billion.

“SM Prime is looking at P100 billion for its capital expenditure program for 2024,” the Sy-led holding firm said.

It added that the company remained “committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.”

SM Prime shares fell by 95 centavos, or 2.79 percent, to P33.05 apiece on Monday as the benchmark Philippine Stock Exchange index finished down 1.09 percent.