SM Prime Holdings Inc., the country’s leading integrated property company, said Monday net income rose 15 percent in the third quarter to P4.9 billion from P4.2 billion a year ago, driven by the sustained growth of shopping mall and residential businesses.
Third-quarter consolidated revenues also increased 14 percentto P18.5 billion from P16.3 billion in the same period last year, the company said in disclosure to the stock exchange.
“SM Prime sustained its overall performance as it benefited from the continued growth of the economy. The synergy and contribution of our business units are reflected in our strong results. We expect SM Prime’s success to continue over the medium-term as economic growth spread to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” SM Prime president Jeffrey Lim said.
The company’ strong third-quarter performance brought the nine-month consolidated net income to P17.5 billion, an increase of 13 percent from P15.5 billion in same period last year.
Nine-month revenues climbed 11 percent to P57.8 billion.
SM Prime said mall revenues from Philippine operations rose 9 percent to P32.1 billion from P29.4 billion a year earlier, while sales from residential group led by SM Development Corp. grew 10 percent to P18.7 billion from P16.9 billion.
SM Prime attributed the strong mall revenues to the 7-percent growth in same-mall sales and new retail space of 1 million square meters in gross floor area that were added in the past two years.
Cinema and event ticket sales reached P3.44 billion, slightly higher than last year’s P3.4 billion.
SM Prime had 58 malls in the Philippines and six in China with a gross floor area of 8.5 million sqm. as of end-September 2016.
SM Prime is scheduled to open SM East Ortigas and SM City Tianjin in China before the end of the year.
SM Prime said by end of 2016, it would have a combined GFA of nearly 9 million sqm.
Meanwhile, SM Prime said the residential group managed to register robust sales in the first nine months, driven by sales take-up on ready-for-occupancy units from various projects.
SMDC’s reservation sales jumped 22 percent in terms of sales value to P35.5 billion in the first nine months from P29.1 billion last year.
This is equivalent to a 20-percent increase in unit sales to 12,579 units from 10,520 units.
SM Prime launched three new projects and expanded its existing developments equivalent to 6,000 units in the cities of Las Pinas, Pasay and Taguig.
SM Prime is set to launch new and expanded housing projects in the cities of Quezon, Pasay and Tagaytay.