SM Prime earnings up 38% in 2022

SM Prime Holdings Inc., the Syled property developer, posted a net income of P30.1 billion last year, up 38 percent.

This, as the mall, office and residential developer raked in P105.8 billion in consolidated revenues, a 29 percent increase from the P82.3 billion in 2021.

SM Prime president Jeffrey Lim said the company was able to finish the year strong despite the challenges.

“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for the most of the year, owing to the robust consumer spending particularly in the last quarter,” Lim said.

Moving forward, he said, the company would continue to monitor the business environment and watch out for impact of movements in the inflation and interest rates, including impact on our supply chain.

Nonetheless, he added, SM Prime is committed to continue expanding despite the challenges.

“We are poised to build on the growth momentum and proceed to expand our footprint in key areas in the country,” Lim said.

SM Prime’s consolidated operating income went up by 52 percent to P49.2 billion last year from P32.4 billion in 2021.

The company’s Philippine mall business registered P49.8 billion in revenues in 2022, more than double the P24.1 billion in the previous year.

This accounted for 47 percent of SM Prime’s consolidated revenues.

With the resumption of full rental fees in the second half of 2022, SM Prime’s local mall rental income went up by 92 percent to P44.1 billion.

Cinema, event ticket sales, and other revenues recorded P5.7 billion, higher than last year’s P1.1 billion.

On the other hand, the residential business group, led by SM Development Corp. (SMDC), posted P40.1 billion in revenues in 2022, lower than the P45.9 billion registered in 2021.

However, last year’s reservation sales reached P102 billion, slightly higher than P98.9 billion in 2021, or an 18 percent increase in unit sales of more than 21,000 in 2022 from almost 18,000 in the previous year.

SM Prime’s office and hotel and convention center businesses, which accounted for 10 percent of the company’s consolidated revenues, recorded a 59 percent growth in revenues to P10.5 billion.

For the office business, SM Prime launched FourE-Com Center, which is located at the Mall of Asia Complex in Pasay City, as well as the SMX Clark Convention Center in Pampanga, which is nestled alongside SM City Clark and Park Inn Radisson Clark.

As of December 2022, SM Prime had 82 malls in the Philippines, consisting of 58 malls in the provincial areas, and 24 malls in Metro Manila.