Property developer SM Prime Holdings Inc. said Monday net income climbed 16 percent in the first half to P19.3 billion from P16.62 billion in the same period last year on the sustained growth of its mall and residential businesses.
SM Prime said in a disclosure to the stock exchange first-half consolidated revenues increased 15 percent in the six-month period to P57.05 billion from P49.77 billion a year ago. Operating income also rose 17 percent to P27.42 billion from P23.36 billion.
“The country’s stable economy has helped SM Prime maintain its growth in all core businesses for the first half of 2019. We are optimistic to sustain this growth moving forward as we launch new projects with the goal of providing more integrated property developments across the Philippines,” SM Prime president Jeffrey Lim said.
The company said net income in the second quarter rose 16 percent to P10.50 billion from P9.02 billion a year earlier as consolidated sales increased 16 percent to P30.51 billion.
Mall revenues, which accounted for 55 percent of total sales, climbed 8 percent to P31.07 billion in the first half from last year’s P28.71 billion.
SM Prime was operating 72 malls in the Philippines and seven malls in China with a total gross floor area of 9.3 million square meters as of end-June.
The company is also scheduled to open SM Center Dagupan, SM City Olongapo Central, SM City Butuan and SM Mindpro Citimall in Zamboanga in the second half.
Residential business posted a 26-percent increase in sales to P21.43 billion in the first half from P17.05 billion a year ago on aggressive launches.
SM Development Corp., the company’s primary residential business unit, recorded a 20-percent increase in reservation sales in the first six months to P41.46 billion.
This was led by a 6-percent increase in unit sales to 9,877 from 9,319 units in the same period last year.
SM Prime’s other businesses led by commercial properties group and hotels and convention centers reported combined revenue growth of 13 percent to P4.63 billion in the first half from P4.11 billion in the same period last year.
The group had 11 office buildings with a combined GFA of 642,000 sqm as of June 2019. It also has seven hotels with more than 1,700 rooms, four convention centers, and three trade halls.
The company’s first campus-building, the NU Tower, in the Mall of Asia Complex is set to be launched in the second half.
The group is set to open Park Inn by Radisson-North EDSA later this year.
