Property developer SM Prime Holdings Inc. said recurring net income climbed 16 percent in 2017 to P27.6 billion from P23.8 billion in 2016, boosted by strong mall operations and robust take up of residential projects.
SM Prime said in a disclosure to the stock exchange consolidated revenues grew 14 percent to P90.9 billion in 2017 from P79.8 billion in 2016, while overall operating income improved 15 percent to P40.6 billion from P35.3 billion.
“SM Prime continues to benefit from the sustained overall economic progress of the Philippines that resulted in higher spending power for most Filipino families. This translated into consistent growth of our key businesses that include higher rental revenues of our malls, increased residential units sales and growing contribution of our other business segments,” SM Prime president Jeffrey Lim said.
Mall revenues jumped 9 percent last year to P53.2 billion from P48.6 billion in 2016 as rental income, which accounted for the bulk of total mall sales, climbed 11 percent to P45.3 billion
The company traced the increase in revenue to rising contribution of rentals from new and expanded malls that were launched in 2016 and 2017, including SM City San Jose Del Monte, SM City Trece Martires, SM City East Ortigas, SM CDO Downtown Premier, S-Maison at Conrad Manila, SM City Puerto Princesa and SM Center Tuguegarao Downtown.
It said same-mall-sales growth was consistent at 7 percent across all mature malls. Cinema and event ticket sales improved 2 percent to P4.8 billion in 2017 while revenues from amusement and merchandise sales rose 8 percent to P3.1 billion.
SM Prime had 67 malls in the Philippines offering 8 million square meters of gross floor area and seven malls in China with 1.3 million sqm as of end-2017.
SM Prime said residential business under SM Development Corp. posted an 18-percent revenue growth in 2017 to P30 billion from P25.4 billion in 2016.
Operating income improved 24 percent to P8.9 billion on construction accomplishments of projects launched in 2013 up to 2016 and continued increase in sales take-up of ready-for-occupancy units.
SMDC’s reservation sales grew 21 percent in terms of sales value to P57.8 billion in 2017 from P47.7 billion in 2016.
SMDC sold 17,259 units in 2017, up 4 percent from 16,670 units in 2016.