Property developer SM Prime Holdings Inc. said Monday consolidated net income fell 43.4 percent in 2020 to P18 billion from P31.8 billion in 2019 as its mall business was severely affected by the pandemic.
SM Prime said in a disclosure to the stock exchange full-year consolidated revenues dropped 30.7 percent to P81.9 billion from P118.3 billion in 2019.
“We are optimistic, that together as one, we will all rise from this challenge and look forward to a better year. We encourage our fellow Filipino to keep supporting our local businesses while practicing safety protocols at all times,” SM Prime president Jeffrey Lim said in a statement.
Revenues from Philippine mall business dropped 59 percent to P23.6 billion from P57.8 billion because of the waiver on rents and discounts to support tenants during the pandemic.
SM Prime said that in the fourth quarter of 2020, it opened two new malls in Mindanao—SM City Butuan and SM City Mindpro.
SM Prime’s residential business, led by SM Development Corp., registered a 6-percent increase in revenues to P46.5 billion from P43.7 billion in the previous year. Operating income also went up by 16 percent to P19.7 billion from P17 billion.
SMDC’s reservation sales increased 10 percent last year, bringing the sales take-up to P99 billion from P90billion in 2019.
Revenues from commercial properties also posted a 4-percent growth to P4.8 billion in 2020 from the previous year’s P4.6 billion.
Meanwhile, the company’s hotels and convention centers recorded P1.6 billion in revenues in 2020, a decline of 68.6 percent from P5.1 billion in 2019. The company opened Olongapo City Convention Center in Zambales last year.
“SM Prime remains committed in its effort to support the national government and other organizations to contain and combat the spread of COVID-19 in the country. As our core businesses slowly recover from the contraction brought about by community quarantines, our company will continue providing avenues that will further enhance and facilitate these collective efforts with various organization, while sustaining our assistance to our employees, business partners and the communities we serve,” Lim said.