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SM Prime’s profit increased 12% to P10.4b in first half

Property developer SM Prime Holdings Inc. posted a net income of P11.6 billion in the first half, up 12 percent from P10.4 billion in the same period last year, fueled by the strong performance of residential business.

SM Prime said Monday net income in the second quarter jumped 147.6 percent to P5.2 billion from P2.1 billion a year ago.

The property firm attributed the company’s strong first-half results to the positive performance of the group’s residential business in the first six months and the recovery of mall business in the second quarter despite the stricter community quarantine from March to May 2021 in key areas, such as Metro Manila and nearby provinces.

First-half consolidated sales fell 6 percent to P41.1 billion from P43.7 billion of 2020’s first half because of lower sales from the mall business.

SM Prime’s residential business, which accounted for 60 percent of consolidated revenues, registered a 3-percent increase in revenues to P24.5 billion in the first six months from P23.7 billion a year earlier.

The residential business’ operating income improved by 8 percent to P10.4 billion in the first half.

SM Development Corp.’s reservation sales grew by 30 percent in the first half to P55.1 billion from P42.4 billion in the same period last year.

Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the national government.

Meanwhile, SM Prime’s Philippine mall business booked P10.7 billion in revenues from January to June, down 25.7 percent from P14.4 billion in the first six months of 2020.

“The reimplementation of enhanced community quarantine in Metro Manila, Bulacan, Cavite, Laguna and Rizal [NCR-Plus bubble] from March to May caused lower mall activities in the mentioned areas,” SM Prime said.

China malls recorded a 48-percent growth in revenues to P3 billion in the first six months from P2 billion in the first half of 2020.

SM Prime’s other business segments, which include offices and hotels, and convention centers, contributed P3.1 billion to total revenues.

The company opened the south wing of Park Inn by Radisson Clark, which added 100 new rooms to the group’s hotel portfolio in the first half.

“In these challenging times, we are committed more in providing a safe environment to all our stakeholders by strict observance of health and safety protocols across all our developments. Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide as well as providing free inoculation to thousands of our employees,” SM Prime president Jeffrey Lim said.

Topics: SM Prime Holdings Inc. , net income , residential business
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