SM Prime's Net Income Increases by 22% in 3Q of 2019
(04 November 2019, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the largest integrated property developers in Southeast Asia, recorded an 18% growth in its consolidated net income in the first nine months of 2019 to PHP27.60 billion from PHP23.44 billion in the first nine months of 2018. The consolidated revenues rose by 14% to PHP85.03 billion from PHP74.56 billion of the same period, while consolidated operating income reported a 17% growth to PHP41.00 billion from PHP34.91 billion of last year.
SM Prime’s net income for the third quarter of the year is up by 22% to PHP8.30 billion from PHP6.82 billion of the previous year. This is on the back of the Company’s revenue of PHP27.98 billion, 13% higher compared to last year’s PHP24.79 billion.
"SM Prime’s recent developments and expansion programs in various progressive cities in the Philippines have contributed significantly to the Company’s strong performance in the first nine months of 2019. Our core businesses, led by the malls and residential segments, are set to sustain the strong performance as we approach the fourth quarter of the year,” SM Prime President Jeffrey C. Lim said.
SM Prime’s Philippine mall revenues recorded an 8% growth in the first nine months of the year to PHP42.03 billion from PHP38.86 billion of the previous year, while same-mall-sales growth is sustained at 7%.
Meanwhile, the Company’s Philippine cinema and event ticket sales are up by 6% to PHP4.14 billion from PHP3.92 billion. Other mall revenues, which include leisure, entertainment and merchandise sales, improved to PHP2.75 billion from PHP2.35 billion, a 17% increase from the same period last year.
Philippine Mall operating income increased by 9% to PHP23.95 billion from PHP22.00 billion, while operating income margin is stable at 57%.
SM Prime has 81 malls - 74 in the Philippines and seven in China. In the Philippines, 42% of SM Prime’s mall spaces are in Metro Manila, while the rest are strategically located in key provincial cities and emerging provinces. The Company has opened SM City Olongapo Central during the third quarter of the year and SM Center Dagupan last October.
SM Prime’s residential business segment, led by SM Development Corp. (SMDC), account for 38% of the Company’s consolidated revenues. The group reported a 26% growth on its revenues for the first three quarters of the year to PHP31.92 billion from PHP25.26 billion of the same period last year. Gross profit margin improved to 53% from 50%.
Sales from SMDC’s recent projects in Pampanga, Cavite, Quezon City, Rizal and Parañaque City, as well as the fast take-up of various Ready-For-Occupancy (RFO) projects, particularly those located within Mall of Asia Complex and Makati Central Business District, were the primary drivers of growth in the residential business segment.
SMDC reported a 26% growth in reservation sales in the first nine months of 2019 to PHP66.42 billion from the PHP52.80 billion reported last year. These are from newly launched projects in 2019 namely Glam Residences in Quezon City, Sail Residences in Pasay City, Lane Residences in Davao City and Style Residences in Iloilo City.
SM Prime’s Commercial Properties Group (CPG) and SM Hotels and Convention Centers (SMHCC), posted a combined revenue growth of 11% in the first nine months of the year to PHP6.83 billion from PHP6.17 billion of the same period last year.
The CPG and SMHCC’s combined operating income increased by 16% to PHP3.36 billion from PHP2.89 billion, while operating income margin increased to 49%.
CPG operates 12 office buildings with a total GFA of more than 662,000 sqm., including the recently launched NU – Mall of Asia (NUMA) in the Mall of Asia Complex, Pasay City. SMHCC manages eight hotels with over 1,900 rooms, four convention centers and three trade halls, including the recently launched Park Inn by Radisson – Iloilo and Park Inn by Radisson – North EDSA.
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.
For further information, please contact:
Vice President, Investor Relations
SM Prime Holdings, Inc.
Tel. no.: +632 862 7940