SM Prime Reports Stronger Rebound with 15% Net Income Growth in 1Q2022
(10 May 2022, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported a 15% growth in the Company’s consolidated net income to PHP7.4 billion in the first three months of 2022 from PHP6.5 billion in the first three months of 2021. This growth was brought about by a 15% increase in SM Prime’s consolidated revenues to PHP23.9 billion from PHP20.8 billion in the same period being reviewed. Consolidated operating income grew by 17% to PHP10.1 billion in the first quarter of 2022 from PHP8.7 billion in 2021.
“The significant improvement in mobility restrictions and the continuous reopening of the local economy in the first three months of 2022 have provided SM Prime further boost to expand its businesses and reach more customers through its integrated property developments,” SM Prime President Jeffrey Lim said.
SM Prime’s Philippine mall business reported a 40% growth in revenues to PHP8.2 billion in the first quarter of the year from PHP5.9 billion in the same period last year. The easing of community quarantine levels in key areas in the country, which allowed more shops to operate, has provided the Company with PHP 7.6 billion in rental income in the first three months of 2022, 34% higher than PHP 5.6 billion in the first three months of 2021. SM Prime’s cinema, event ticket sales, and other revenues increased by 172% to PHP0.6 billion in January to March of 2022 from PHP0.2 billion in the same months in 2021. SM Prime’s China mall business recorded RMB0.205 billion revenues in the first three months of 2022, 3% higher from RMB0.199 billion in the first three months of 2021.
Meanwhile, SM Prime’s residential business group, led by SM Development Corp. (SMDC), reported PHP12.0 billion in revenues in the first quarter of 2022, almost the same as the previous year. SMDC’s sales take-up from January to March of 2022 posted PHP31.1 billion, mostly coming from the Company’s vertical residential developments in the cities of Mandaluyong, Parañaque and Makati.
“Despite the sudden COVID-19 cases surge in January 2022, we were able to maintain our growth momentum in the succeeding months while prioritizing the health and safety of all our stakeholders. We remain optimistic this year as the government continues its efforts in containing the spread of COVID-19,” Mr. Lim added.
SM Prime’s other key businesses, which include offices, hotels, and convention centers, reported a 30% growth in revenues to PHP2.0 billion in the first quarter of 2022 from PHP1.6 billion in 2021. The Company’s office business segment recorded PHP1.4 billion, 11% higher from the first quarter of last year, while the hotels and convention centers business segment recorded PHP0.6 billion from January to March 2022, 104% higher in the same period in 2021.
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.
This document may contain forward-looking statements and forward-looking information that are subject to significant risks and uncertainties including, without limitation, statements relating to known and unknown risks; uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expected future results; performance or achievements expressed or implied by forward-looking statements; our overall future business, financial condition, and results of operations, including, but not limited to financial position or cash flow; our goals for or estimates of future operational performance or results; and changes in the regulatory environment including, but not limited to, policies, decisions, and determinations of governmental or regulatory authorities. Although: (1) SM Prime Holdings, Inc. has extensive experience; and (2) the forward-looking statements may be reasonable, nothing herein should be relied upon as a commitment from SM Prime Holdings, Inc. as we cannot guarantee future events, performance or events due to various risks and uncertainties.