5 days ago
SM Prime hits all-time high net income of P24.5 billion in H1
Sy-led property developer SM Prime Holdings Inc. (SMPH) posted an all-time high net income of P24.5 billion in the first half of the year, as strong consumption and the recovery in retail and tourism drove revenues up by 5%.
SMPH said its first-half net income stood at P24.5 billion, reflecting an 11% increase from P22.1 billion the previous year. Consolidated revenues increased 5% to P68 billion, with rental income contributing 60%, real estate sales with 29%, and cinema ticket sales, food and beverage, amusement at 11%.
Malls contributed P17 billion, driven by new openings, higher foot traffic, and strong occupancy. Income from residential projects rose 2% to P5.1 billion, while the office and warehouse segment contributed 7%, and hotels and convention centers contributed P635 million.
'The redevelopment and new attractions at our flagship Mall of Asia drove strong foot traffic and tenant sales. Robust consumer activity activity and improving business confidence also lifted contributions across our portfolio,' SM Prime president Jeffrey Lim said in an emailed statement.
'Our results underscore the resilience of our businesses and the strength of our diversified portfolio. With our capex program progressing as planned, we are well-positioned to drive long-term growth across key markets,' he added.
Moving forward, SMPH chief finance officer John Nai Peng Ong said the company is looking to sustain the first-half growth in the second semester.
'Looking at the trajectory coming from the first quarter, second quarter, and historical data goes to show that it will have certain improvements,' he said in a virtual briefing.
'Looking at the upcoming Christmas holidays and Filipinos coming back home, we do expect certain improvements still for retail,' he added.
SM Prime is set to spend P100 billion this year, with the largest share going to integrated property developments under its residential business and mall operations.
The company's subsidiaries include SM Development Corp., Costa del Hamilo Inc., Tagaytay Resort Development Corp., SM Arena Complex Corporation, SM Hotels and Conventions Corp., and SM Land (China) Limited. — Jon Viktor D. Cabuenas/BM, GMA Integrated News
