SHOPPING-mall operator SM Prime Holdings Inc. said its net income grew 17 percent to P23.44 billion during the first three quarters of the year, from last year’s P20.05 billion.
Consolidated revenues rose 15 percent to P74.56 billion, from P64.69 billion last year, mainly as a result of new mall openings.
For the third quarter alone, company profits grew 20 percent to P6.82 billion, from P5.66 billion last year, as revenues rose 16 percent to P24.79 billion, from P21.44 billion last year. The company is controlled by the family of Henry Sy.
“Through the solid performances of our core businesses, we are positive 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 we serve and deliver more sustainable integrated developments for the betterment of our country,” SM Prime President Jeffrey C. Lim said in a statement.
Mall revenues, which accounts for more than half of SM Prime’s nine-month total revenues, recorded a 12-percent increase to P43.26 billion, from P38.58 billion last year.
Mall-rental revenues went up by 12 percent to P36.83 billion from P32.83 billion, backed by the 8-percent growth of same-mall-sales driven by new malls opened from 2016 to 2018, located mostly in the provinces.
Cinema and event ticket sales surged by 17 percent to P3.92 billion, from P3.34 billion last year, while mall operating income increased by 12 percent to P23.97 billion, from P21.38 billion.
SM Prime has 78 malls, 71 in the Philippines and seven in China, with a total gross floor area of 9.5 million square meters.
The company opened four malls in the first nine months of the year, including those in Imus in Cavite, Urdaneta in Pangasinan, Telabastagan in Pampanga and Legazpi in Albay. Its branch in Ormoc, Leyte, is scheduled to launch during the fourth quarter of 2018, along with Luxe Duty Free in the Mall of Asia Complex in Pasay.
Meanwhile, its residential group reported a 23-percent growth on its revenue for the first three quarters of the year to P25.26 billion, from P20.50 billion last year. Operating income registered a 34-percent increase to P8.29 billion, from P6.17 billion.
SM Development Corp., the high-rise residential developer, recorded a 25-percent increase in reservation sales for the nine-month period to P52.8 billion, from P42.08 billion the previous year. This translates to a 15-percent increase in unit sales to 14,698 units from 12,811 units. SM Prime intends to launch between 15,000 and 18,000 residential units next year.
The company’s commercial properties group and SM Hotels and Convention Centers posted a combined revenue growth of 7 percent in the first nine months of the year to P6.17 billion, from P5.76 billion in the same period last year.
The group operates 11 office buildings with a total gross floor area of almost 623,000 square meters, which already include the recently launched ThreeE-Com Center in the MOA in September. It manages six hotels with more than 1,500 rooms, four convention centers and three trade halls.
The company is set to launch the campus-office building named NU Tower, and the FourE-Com Center, both in Pasay City, while Park Inn in Clarkfield, Pampanga, will be expanded. It will also launch two new hotels.