SM Prime net income nearly doubles to P7.9 billion in third quarter

Sy-led SM Prime Holdings Inc. nearly doubled its consolidated net income in the third quarter as revenues from its businesses surged, led by its mall operations.

In an emailed statement, SM Prime said its third-quarter consolidated net income grew to P7.9 billion from P4.0 billion the same quarter last year, as consolidated revenues jumped 74% to P27.3 billion from P15.7 billion.

Revenues of the mall business more than doubled to P33.9 billion in the first nine months of the year from P15.8 billion, accounting for 46% of the consolidated revenues.

SM Supermalls in July announced the resumption of the charging of full rental fees across its Philippine malls, following rent concessions to tenants amid the COVID-19 pandemic.

Local malls recorded P30.4 billion rental income in the first three quarters, up from P15.2 billion last year. The China mall business fell by 7% to RMB0.55 billion from RMB0.59 billion.

The company’s residential business—led by SM Development Corporation—recorded a 32% increase in revenues for the period at P10.1 billion from P7.6 billion last year.

Reservation sales jumped 10% to P83.9 billion, while the offices, hotels, and convention centers recorded a 56% growth in revenues to P7.2 billion from P4.6 billion.

Revenues from the office business segment also increased 17% to P4.4 billion, while those from hotels and convention centers surged by 224% to P2.8 billion from P0.9 billion.

“We are happy to report very encouraging result of our third quarter operations, which is aligned with the improvement in the local economy,” SM Prime president Jeffrey Lim said.

“With this, we are ready to proceed with our business plans to continually deliver value for our stakeholders,” he added.

SM Prime in April announced an P80-billion spending program for the year, with some 20% or about P15 billion to P16 billion for land banking.

Shares in SM Prime closed Monday at P34.00 apiece, up by P1.70 or 5.26% from last Friday’s finish of P32.30. — BM, GMA Integrated News