SM Prime Holdings Inc., the largest integrated property company, posted a net income of P6.6 billion in the first quarter of 2017, up 13 percent from P5.8 billion year-on-year on the back of a double-digit growth in revenues.
SM Prime said in a disclosure to the stock exchange first-quarter consolidated revenues rose 12 percent to P20.5 billion from P18.2 billion on year.
Overall operating income increased 14 percent to P9.6 billion from P8.4 billion on year, largely due to rental revenues from mall expansions in the past two years as well as higher real estate sales and construction accomplishments of residential projects since 2014.
“Our strong performance in the first quarter gives us high confidence that we are on track to meet our growth targets in terms of revenues and income for the full year. As we continue our strategic rollout of projects across our properties, we are optimistic that our growth will be sustained by the overall expansion of the Philippine economy,” SM Prime president Jeffrey Lim said.
Mall revenues, which accounted for 62 percent of total sales, increased 11 percent to P12.7 billion from P11.4 billion last year.
Rentals grew 10 percent to P10.7 billion from P9.7 billion, driven by the additional retail spaces of 1.1 million square meters of gross floor area added since 2015.
SM Prime operates 60 shopping malls in the Philippines and seven in China with a combined GFA of nine million sq. m. The company this year is scheduled to open five new malls in the Philippines. These are SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan province, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.
SM Prime by the end of 2017 will have 65 malls in the Philippines and seven in China.
SM Prime’s residential group posted a six-percent growth in revenues to P6 billion from P5.6 billion on year to contribute 29 percent of the overall revenues.
SM Development Corp.’s reservation sales surged 52 percent to P12.3 billion from P8.1 billion on yea, translating into a 35-percent improvement in unit sales to 3,988 units from 2,949 units.