SM Prime nets P40B in 2023

SM Prime Holdings Inc. is optimistic to sustain its growth this year, as it reported a 33% jump in its consolidated net income for 2023 on the back of the revenue growth reported by its key businesses during the year.

In a regulatory filing, SM Prime said its consolidated net income grew to P40.0 billion in 2023 from P30.1 billion the previous year, while consolidated operating income increased 24% to P61.3 billion. Consolidated revenues climbed 21% to P128.1 billion.

“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023,” SM Prime president Jeffrey Lim said.

“We continue to see this growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” he added.

Lim last month said the company is looking at up to P100 billion for its capital expenditure program this year, while it awaits the improvement of market conditions before launching its $1-billion real estate investment trust (REIT).

For 2023, the mall business — which accounts for 56% of consolidated revenues — posted  P71.9 billion in revenues, marking a 30% growth. Mall rental income rose by 24% to P61.3 billion.

The residential business, led by SM Development Corp., reported an 7% growth in revenues to P43.1 billion. Gross profit grew by 15% to P25.4 billion, while reservation sales stood at P102 billion or equivalent to 21,000 residential units sold for the year.

The company’s other key businesses, including its offices, hotels, and convention centers, posted a 26% increase in its revenues to P13.1 billion, with the office unit recording P6.8 billion in revenues.

SM Prime’s subsidiaries include Development Corp., Costa del Hamilo Inc., Tagaytay Resort Development Corp., SM Arena Complex Corp., SM Hotels and Conventions Corp., and SM Land (China) Limited.

Shares in SM Prime last traded at P33.05, down by P0.95 or 2.79% from last Friday’s finish of P34.00.—AOL, GMA Integrated News