SM Prime net income up 16% at P8.7 billion in Q4 2018

Integrated property developer SM Prime Holdings Inc. reported a 16-percent increase in bottom line in the fourth quarter of 2018, driven by the strength of its core businesses.

Net income rose to P8.7 billion in October to December 2018, from P7.5 billion a year earlier, the company said in a regulatory filing submitted by SM Prime vice president Alexander Pomento.

Full-year consolidated net income reached P32.2 billion last year, up 17 percent from P27.6 billion in 2017.

Revenue from mall operations rose by 11 percent to P59.3 billion, as rental income climbed 11 percent to P50.5 billion.

“The increase in revenue was due to rising contribution of rentals from new and expanded malls that were launched mostly in the developing provincial areas of the Philippines ...” the filing read.

Cinema and event tickets rose 9 percent to P5.2 billion, while revenue from amusement and merchandise sales increased by 14 percent to P3.6 billion.

SM Prime currently has 72 malls in the Philippines with a cumulative gross floor area (GFA) of 8.3 million square meters (sqm), on top of the seven malls in China with 1.3 million sqm of GFA.

Residential group SM Development Corp. reported a revenue growth of 22 percent to P36.5 billion in from P30 billion, driven by more construction accomplished last year.

“SM Prime is scheduled to launch between 15,000 to 18,000 residential units this 2019 that include high-rise buildings, mid-rise buildings, and single detached house and lot projects,” it said. —Jon Viktor Cabuenas/VDS,  GMA News