SM Prime boosts Q1 profit to P6.6 B

SM Prime Holdings, Inc., the Philippines’ leading integrated property company, reported a 13 percent growth in net income to P6.6 billion in the first quarter of 2017 from P5.8 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, SM Prime said “this was on the back of a 12 percent growth in consolidated revenues to P20.5 billion from P18.2 billion in the first quarter of 2016.
Overall operating income increased by 14 percent to P9.6 billion from P8.4 billion in the same period last year largely due to rental revenues from mall expansions in the past two years as well as higher real estate sales and construction accomplishments of residential projects since 2014.
“Our strong performance in the first quarter gives us high confidence that we are on track to meet our growth targets in terms of revenues and income for the full year,” SM Prime President Jeffrey Lim said.
He noted that, “as we continue our strategic rollout of projects across our properties, we are optimistic that our growth will be sustained by the overall expansion of the Philippine economy.”
In the first quarter of the year, SM Prime’s overall mall revenues, which accounted for 62 percent of consolidated revenues, went up by 11 percent to P12.7 billion from P11.4 billion last year.
Mall rentals grew by 10 percent to P10.7 billion from P9.7 billion driven by the additional retail spaces of 1.1 million square meters (sqm) of gross floor area (GFA) added since 2015. Excluding the new malls and expansion, same-mall-sales grew by 7 percent.
Cinema and event ticket sales increased 16 percent to P1.23 billion from P1.06 billion due to higher international movie and event ticket sales.
Revenues from amusement and merchandise sales jumped 27 percent to P763 million from P602 million on the back of improvement on merchandise sales and new amusement centers in the company’s newer malls.
SM Prime’s residential group posted a 6 percent growth in revenues to P6.0 billion from P5.6 billion in the same period last year. The residential group contributed 29 percent of the overall revenues.
Revenue growth can be traced to the construction accomplishments of SM Development Corporation (SMDC) projects launched from 2014 to 2015.
SMDC’s reservation sales surged by 52 percent to P12.3 billion from P8.1 billion in the first quarter of the year. This translates to a 35 percent improvement in unit sales to 3,988 units from 2,949 units.

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