SM Prime Holdings Inc., the leading integrated property company owned by the Sy family, said core net income grew 12 percent in the first half to P12.6 billion from P11.2 billion a year ago, on higher revenues from mall operations and residential developments.
SM Prime said in a disclosure to the stock exchange first-half consolidated revenues increased 9 percent to P39.2 billion.
Mall operations, which accounted for 60 percent of total revenues, rose 9 percent to P23.6 billion from P21.7 billion in the previous year, while the residential group, which accounted for 34 percent of consolidated revenues, posted a 6-percent increase to P13.2 billion from P12.5 billion.
“SM Prime’s integrated development program in the Philippines that is geared more towards provincial expansion sustained its financial performance in the first half of the year. SM Prime is well-positioned for higher growth given that the Philippines’ economic upturn is starting to spread in the provinces,” SM Prime president Hans Sy said.
SM Prime said the growth in mall revenues was driven by the 7-percent rise in same-malls sales and contribution from the new retail space that were added in the past two years.
Mall operations in China, which accounted for 9 percent of mall revenues, rose 8 percent to P2.1 billion from P1.9 billion in the first half of 2016.
SM Prime has a total of 58 malls in the Philippines and six in China with total gross floor area of 8.5 million square meters.
The company is scheduled to open two more malls this year, including Cherry SM Congressional in Quezon City and SM City East Ortigas in Pasig City.
SM Prime is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna this year.
Meanwhile, SM Prime’s residential group posted reservation sales of P22.6 billion in the first six months, up 20 percent from a year level.
It also posted an 18-percent increase in the number of units sold to 8,091 units from 6,868 units in the same period last year.
SM Prime’s commercial properties group also recorded a 51-percent increase in revenues to P1.1 billion, boosted by the opening of SM Cyber West in Quezon City and Five E-Com Center in Pasay City, with a combined GFA of 171,000 square meters.
