SM Prime posts hefty earnings rise to P32.2B
Property giant SM Prime Holdings Inc. reported a 17 percent jump in earnings last year to P32.2 billion on robust growth in its residential development segment as well as higher revenues from its shopping mall operations.
Consolidated revenues rose 14 percent to P104.1 billion while consolidated operating income jumped 19 percent to P48.3 billion.
For the fourth quarter, SM Prime grew its earnings by 16 percent to P8.7 billion on the back of a 13 percent rise in revenues to P29.5 billion.
“The successes and achievements we are reaping today are the hard work, strategy and partnerships we built five years ago when we consolidated all the key property companies of SM Group under SM Prime. Driven by our goal to deliver more innovative and sustainable lifestyle cities, SM Prime is aiming to sustain this growth trajectory in the coming years,” said SM Prime president Jeffrey Lim.
Revenues from the mall business amounted to P59.3 billion, up 11 percent due to rising contribution of rentals from new and expanded malls,
SM Prime ended 2018 with a total of 72 malls in the Philippines with a gross floor area of 8.3 million square meters and seven malls in China with 1.3 million sqm of GFA.
This year, the company will be opening four new malls — SM Center Dagupan, SM City Olongapo Central, SM City Butuan and SM Mindpro Citimall in Zamboanga.
The residential group through SM Development Corp. (SMDC) delivered solid results with revenues rising 22 percent to P36.5 billion owing to higher construction accomplishments of some projects.
Reservation sales jumped 25 percent to P72.3 billion. In terms of unit sales, the number increased 23 percent to 21,157 on strong take-up of several projects.
SM Prime is set to roll out 15,000 to 18,000 residential units which include high-rise buildings, mid-rise buildings and single detached house and lot projects.
Revenues from the commercial properties and the hotels and convention centers business segments rose 18 with the opening of ThreeE-Com Center, FiveE-Com Center and Conrad Manila.
SM Prime currently has 11 office buildings with a combined GFA of 623,000 sqm. It is scheduled to launch NU Tower at the Mall of Asia Complex in Pasay City this year while FourE- Com Center is set for opening by 2020. These projects will boost SM Prime’s total offce GFA to almost 238,000 sqm.
In addition to its six new hotels, the group is set to open to 2 new ones this year — Park Inn by Radisson – Iloilo and Park Inn by Radisson – North EDSA.