SM Prime posts 49% surge in Q2 net income

SY-led SM Prime Holdings, Inc. on Monday reported a consolidated net income of P10 billion for the second quarter, a 49% increase from P6.7 billion previously, driven by higher revenues.

In a regulatory filing, the company said that consolidated revenues for the three-month period rose by 39% to P31.2 billion from P22.5 billion last year.

The company’s Philippine malls business revenue saw a 30% growth during the quarter, reaching P16.1 billion, compared to the previous year’s P12.4 billion.

Likewise, its primary residential business, spearheaded by SM Development Corp. (SMDC), achieved substantial progress, surging by 82% to P9.9 billion from the prior year’s P5.4 billion.

Meanwhile, for the first half of the year, the company’s consolidated net income increased by 38% to P19.4 billion from P14.1 billion the previous year, as revenues rose by 29% to P59.9 billion from P46.3 billion year on year.

“The strong performance of SM Prime’s main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry,” said SM Prime President Jeffrey C. Lim said in a statement.

“We will continue to be strategic in expanding our footprints and operations across different localities where we can continue to be partners for growth and progress,” Mr. Lim added.

For the six-month period, the company’s local mall business registered a 53% surge in revenues, reaching P31.5 billion from P20.6 billion. This accounted for 53% of its consolidated revenues.

SM Prime’s rental income increased by 42% to P26.3 billion from P18.6 billion, driven by ongoing enhancements in tenant sales and foot traffic.

The company’s local cinema, ticket sales, and other revenues more than doubled to P5.2 billion in the first half from the previous year’s P2 billion.

Revenues from its China mall business experienced a slight uptick to 398 million renminbi (RMB), marking a 3.4% increase from the previous year’s 385 million RMB.

SMDC’s top line for the first semester reached P17.6 billion, with reservation sales growing by 15% to P68.5 million from P59.4 million in the previous year.

“This translates to a 17% growth in unit sales in 1H 2023. The improving market condition provided local and overseas Filipino buyers the capacity to invest in SM Prime’s residential projects,” the company said.

Moreover, the company’s other segments, encompassing offices, hotels, and convention centers, achieved a 40% growth in revenue, reaching P6.2 billion from last year’s P4.5 billion.

“We maintain a positive outlook on the company’s full-year 2023 results, given the improving market condition. SM Prime will also continue to explore new and sustainable ways of reaching our customers and delivering unparalleled experience and value in our developments,” Mr. Lim said. — Adrian H. Halili