Property developer SM Prime Holdings Inc. said Monday net income expanded 17 percent in the first nine months to P23.44 billion from P20.05 billion a year ago on higher revenues.
SM Prime said in a disclosure to the stock exchange consolidated revenues increased 15 percent in the nine-month period to P74.56 billion from P64.69 billion in the same period last year.
Consolidated operating income went up 16 percent in the first three quarters to P34.91 billion from P30.14 billion a year earlier.
SM Prime said net income in the third quarter grew 20 percent to P6.82 billion from P5.66 billion a year ago, as revenues climbed 16 percent to P24.79 billion from P21.44 billion.
“SM Prime’s continuous growth as reflected in our first nine-month report shows the results of our strategic expansion in various developing cities in the country. Through the solid performances of our core businesses, we are positive that we will deliver the net income growth we committed when we integrated five years ago,” SM Prime president Jeffrey Lim said.
“We intend to keep this growth trajectory to enrich more lives in the communities that we serve and deliver more sustainable integrated developments for the betterment of our country,” he said.
Mall revenues, which accounted for 58 percent of the group’s nine-month revenues, recorded a 12-percent increase to P43.26 billion.
The growth was driven by an 8-percent same-mall sales growth and aggressive mall openings.
SM Prime was operating 78 malls as of end-September, including 71 in the Philippines and seven in China. These malls had a total gross floor area of 9.5 million square meters.
SM Prime’s residential group recorded a 23-percent growth in revenue in the first three quarters to P25.26 billion from P20.50 billion in the same period last year.
Operating income rose 34 percent to P8.29 billion from P6.17 billion a year earlier, while gross profit margin improved to 50 percent from 49 percent.
The increase was attributed to higher construction accomplishments of projects launched in 2015 to 2017.
SM Development Corp., the company’s primary residential developer, recorded a 25-percent increase in reservation sales in the first nine months to P52.80 billion fromP42.08 billion reported last year.
This translated into a 15-percent increase in unit sales to 14,698 units from 12,811 units a year ago.
SM Prime said it planned to launch 15,000 to 18,000 residential units next year.