SM Prime net income jumps 11% to P10.5 billion

SY-LED property developer SM Prime Holdings, Inc. said its consolidated net income grew by 11% to P10.5 billion for the first quarter (Q1) from P9.4 billion last year, driven by improvements across its business segments.

First-quarter consolidated revenues increased by 7% to P30.7 billion compared with P28.6 billion in 2023, SM Prime said in a stock exchange disclosure on Monday.

The company’s mall business posted a 7% revenue growth to P18.2 billion. It took up 59% of overall revenues.

Mall rental income climbed by 8% to P15.8 billion, while other revenues, including cinema and event ticket sales, reached P2.5 billion.

The company’s primary residential business group recorded a 10% increase in revenues to P8.5 billion from P7.7 billion last year, accounting for 28% of overall revenues. Reservation sales reached P26.5 billion during the period.

Revenues of other business segments consisting of offices, hotels, and convention centers saw a 9% growth to P3.4 billion.

Broken down, the company’s office business unit reported P1.8 billion in revenues, while hotels and convention centers business unit reached P1.6 billion in revenues.

SM Prime’s first-quarter consolidated operating income rose by 6% to P14.7 billion from P13.8 billion last year.

“We are encouraged with the performance of all our businesses this first quarter of 2024. We are particularly bullish with our malls business as we plan to open a new mall this month of May, and another three within the year,” SM Prime President Jeffrey C. Lim said.

“For the residential business, our focus remains in addressing housing backlog within the socialized and economic segments,” he added.

SM Prime is the property unit of the Sy family’s listed holding company SM Investments Corp. It earmarked P100 billion for its capital expenditure budget this year.

On Monday, SM Prime shares dropped by 0.18% or five centavos to P27.35 per share. — Revin Mikhael Ochave