P100-B earmarked for investment capital
SM Prime reported a whopping P450-B consolidated net income even as it announced that 60 percent of its P100-B investment capital in 2024 will be used to enhance its malls and develop new residential properties while 40 percent will be directed to new properties and coastal developments in line with its modern, eco-friendly urbanization vision
SM Prime Holdings Inc. (SMPH) marks its 30th anniversary as a publicly listed company with the announcement of its highestever recorded income and a P100 billion investment for partners, stakeholders, and communities in which he country’s leading integrated property developer operates in.
With eyes set on the future, SM Prime reaffirms its position as a catalyst for economic development and community advancement.
Record-breaking performance
During its Annual Stockholders Meeting held on 23 April 2024, SM Prime announced its highest-ever recorded income, reaching P40 billion in consolidated net income, marking a 33 percent increase from 2022.
Additionally, the company’s revenues surged by 21 percent, soaring to P128.1 billion, a notable growth from the previous year. Consolidated operating income also saw significant growth, rising by 24 percent to P61.3 billion.
The outstanding performance can be attributed to SM Prime’s mall business, driving 56 percent of consolidated revenues and a 30 percent growth to P71.9 billion in 2023. This growth was bolstered by a 24 percent increase in mall rental income, amounting to P61.3 billion.
Moreover, the opening of four new malls in 2023 expanded SM’s retail presence to 85 malls in the Philippines and eight malls in China.
Meanwhile, SM Prime’s residential business group, led by SM Development Corporation (SMDC), recorded an eight percent growth in revenues to P43.1 billion in 2023. The residential group’s gross profit rose by 15 percent to P25.4 billion, with reservation sales standing at P102 billion.
In addition to its mall and residential businesses, SM Prime’s other key segments comprising offices, hotels, and convention centers, contributed 10 percent of consolidated revenues, reported P13.1 billion in revenues in 2023, marking a remarkable 26 percent increase from the previous year.
Commitment to shared growth
At the core of SM Prime’s success is its unwavering commitment to shared prosperity in every city where they are present. With a strategic P100 billion investment capital expenditure in 2024, SM Prime aims to reinvest in its partners, stakeholders, and communities.
The company is aimed at continuously expanding and developing new spaces for Filipinos to enjoy. Sixty percent of its investment capital expenditure will be dedicated to enhancing its malls, development of new residential properties under SMDC, and construction of new hotels and convention centers. Meanwhile, 40 percent will be directed towards acquiring new properties and coastal developments to pave the way for modern, eco-friendly urbanization.
Environmental sustainability and disaster resilience
SM Prime has always been committed towards creating a sustainable future. It intends to continue working towards its goal of achieving Net Zero carbon emissions by 2040, aligning with the Department of Energy’s target of reaching a 35 percent renewable energy share by 2030.
Through partnerships with renewable energy suppliers and organizations like the World Wildlife Fund for Nature (WWF), SM Prime endeavors to reduce its environmental footprint and advocate for sustainable practices in all areas of its operations.
SM Supermalls’ corporate arm, SM Cares and SMDC’s The Good Guys also remain actively engaged in various community initiatives, such as conducting community disaster preparedness programs, providing support programs for senior citizens and persons with disabilities, and promoting job generation and entrepreneurship through nationwide job fairs and MSME programs.