SM Prime posts 14% growth in recurring profit at P23.8 B
February 21,2017
Source: Manila Bulletin (James A. Loyola)
SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a 14 percent growth in recurring net income to P23.8 billion last year from the P20.9 billion registered in 2015.
In a disclosure to the Philippine Stock Exchange, SMPH said consolidated revenues grew 12 percent to P79.8 billion in 2016 from P71.5 billion in 2015.
The firm said growth was mostly driven by the continued expansion of its malls as well as the strong sales take-up of housing units.
“SM Prime sustained its overall performance in 2016 on the account of focusing more on recurring income stream complemented by the solid performance of the housing group,” SM Prime President Jeffrey Lim said.
He noted that “SM Prime is well-positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country.”
SM Prime’s mall revenues grew by 9 percent to P48.6 billion from the previous year’s P44.5 billion as rentals improved by 10 percent to P41.0 billion from P37.2 billion in the same period under review.
The revenue growth was driven by additional retail spaces of 1.5 million square meters (sqm) of gross floor area (GFA) added in the past two years. Meanwhile, same-mall sales growth was consistent at 7 percent.
Cinema and event ticket sales was slightly down by 3 percent to P4.7 billion in 2016 from P4.8 billion in the same period due to fewer local blockbuster movies shown in 2016 compared with 2015.
Revenues from amusement and merchandise sales rose by 16 percent to P3.0 billion from P2.6 billion with growth coming mostly from higher merchandise sales and new amusement centers in the company’s newer malls.
SM Development Corporation contributed 32 percent to consolidated revenues and grew by 13 percent to P25.4 billion from P22.5 billion in the same period under review.
Operating income, also improved by 17 percent to P7.1 billion from P6.1 billion due to higher sales take-up on ready for occupancy (RFO) units.
SMDC’s reservation sales grew by 18 percent in terms of sales value to P46.7 billion in 2016 from P39.4 billion last year. This translates to a 15 percent improvement on unit sales to 16,320 units from 14,227 units.
SM Prime’s Commercial Properties Group, contributed 3 percent to consolidated revenues, recorded a 32 percent increase to P2.7 billion from P2.1 billion year-on-year. The growth came from the new rental revenues from FiveE-comCenter, which is almost 100% occupied.
SM Prime’s Hotels and Convention Centers revenues posted a 32 percent growth to P3.2 billion from P2.4 billion in 2016 due to improvement in occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.
Source: Manila Bulletin (James A. Loyola)
SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a 14 percent growth in recurring net income to P23.8 billion last year from the P20.9 billion registered in 2015.
In a disclosure to the Philippine Stock Exchange, SMPH said consolidated revenues grew 12 percent to P79.8 billion in 2016 from P71.5 billion in 2015.
The firm said growth was mostly driven by the continued expansion of its malls as well as the strong sales take-up of housing units.
“SM Prime sustained its overall performance in 2016 on the account of focusing more on recurring income stream complemented by the solid performance of the housing group,” SM Prime President Jeffrey Lim said.
He noted that “SM Prime is well-positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country.”
SM Prime’s mall revenues grew by 9 percent to P48.6 billion from the previous year’s P44.5 billion as rentals improved by 10 percent to P41.0 billion from P37.2 billion in the same period under review.
The revenue growth was driven by additional retail spaces of 1.5 million square meters (sqm) of gross floor area (GFA) added in the past two years. Meanwhile, same-mall sales growth was consistent at 7 percent.
Cinema and event ticket sales was slightly down by 3 percent to P4.7 billion in 2016 from P4.8 billion in the same period due to fewer local blockbuster movies shown in 2016 compared with 2015.
Revenues from amusement and merchandise sales rose by 16 percent to P3.0 billion from P2.6 billion with growth coming mostly from higher merchandise sales and new amusement centers in the company’s newer malls.
SM Development Corporation contributed 32 percent to consolidated revenues and grew by 13 percent to P25.4 billion from P22.5 billion in the same period under review.
Operating income, also improved by 17 percent to P7.1 billion from P6.1 billion due to higher sales take-up on ready for occupancy (RFO) units.
SMDC’s reservation sales grew by 18 percent in terms of sales value to P46.7 billion in 2016 from P39.4 billion last year. This translates to a 15 percent improvement on unit sales to 16,320 units from 14,227 units.
SM Prime’s Commercial Properties Group, contributed 3 percent to consolidated revenues, recorded a 32 percent increase to P2.7 billion from P2.1 billion year-on-year. The growth came from the new rental revenues from FiveE-comCenter, which is almost 100% occupied.
SM Prime’s Hotels and Convention Centers revenues posted a 32 percent growth to P3.2 billion from P2.4 billion in 2016 due to improvement in occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.
