SHOPPING mall operator SM Prime Holdings Inc. said its net income grew 18 percent during the three quarters of the year ending September to P27.6 billion from last year’s P23.44 billion on new malls and higher condominium unit sales propel its growth.
Consolidated revenues rose 14 percent to P85.03 billion from P74.56 billion last year, while consolidated operating income grew 17-percent growth to P41 billion from P34.91 billion last year.
For the July to September quarter alone, SM Prime’s net income is up by 22 percent to P8.3 billion from P6.82 billion of the previous year, while revenues increased 13 percent to P27.98 billion from the previous P24.79 billion.
“SM Prime’s recent developments and expansion programs in various progressive cities in the Philippines have contributed significantly to the company’s strong performance in the first nine months of 2019. Our core businesses, led by the malls and residential segments, are set to sustain the strong performance as we approach the fourth quarter of the year,” SM Prime President Jeffrey C. Lim said in a statement.
The company’s domestic mall revenues recorded an 8-percent growth to P42.03 billion from P38.86 billion last year, while same-mall-sales growth was at 7 percent.
Meanwhile, the company’s local cinema and event ticket sales are up by 6 percent to P4.14 billion from P3.92 billion last year. Other mall revenues, which include leisure, entertainment and merchandise sales, improved 17 percent to P2.75 billion from the previous P2.35 billion.
Local mall operating income increased by 9 percent to P23.95 billion from P22 billion, while operating income margin is at 57 percent.
SM Prime has 81 malls, 74 in the Philippines and seven in China. In the Philippines, 42 percent of SM Prime’s mall spaces are in Metro Manila, while the rest are located in key provincial cities and emerging provinces. The company opened SM City Olongapo Central during the third quarter, and SM Center Dagupan last October.
On the other hand, SM Prime’s residential business segment, led by SM Development Corp. (SMDC), account for 38 percent of the company’s consolidated revenues. The group reported a 26-percent growth in revenues for the three quarters of the year to P31.92 billion from P25.26 billion last year. Gross profit margin rose to 53 percent from 50 percent.
Sales from SMDC’s recent projects in Pampanga, Cavite, Quezon City, Rizal and Parañaque, as well as the fast take-up of various ready-for-occupancy projects, located within the Mall of Asia Complex in Pasay and Makati Central Business District, were the primary drivers of growth in the residential business segment.
SMDC reported a 26-percent growth in reservation sales in the first nine months of 2019 to P66.42 billion from the P52.8 billion last year. These were from newly launched projects including Glam Residences in Quezon City, Sail Residences in Pasay, Lane Residences in Davao, and Style Residences in Iloilo.
SM Prime’s Commercial Properties Group and SM Hotels and Convention Centers posted a combined revenue growth of 11 percent to P6.83 billion from P6.17 billion of the same last year.
It operates 12 office buildings with a total gross floor area of more than 662,000 square meters, including the recently launched NU-Mall of Asia in the Mall of Asia Complex, Pasay. The company also manages eight hotels with over 1,900 rooms, four convention centers and three trade halls, including the recently launched Park Inn by Radisson-Iloilo and Park Inn by Radisson-North Edsa.
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