(01 August 2022, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported a 21% increase in the Company’s consolidated net income to PHP14.1 billion in the first half of 2022 from PHP11.6 billion in the first half of 2021. This is supported by a 13% increase in consolidated revenues to PHP46.3 billion from PHP41.1 billion in the same period being reviewed. Consolidated operating income recorded 33% growth to PHP21.4 billion in 2022 from PHP16.1 billion in 2021.
“The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results. We are optimistic that despite the global economic slowdown, the local economy will continue to benefit from the sustained growth in remittances from overseas Filipino workers (OFWs), the business process outsourcing (BPO) industry, as well as the increase in local travel and tours activities,” SM Prime President Jeffrey Lim said.
SM Prime’s Philippine mall business’ revenues, which accounts for 44% of the Company’s consolidated revenues, surged by 92% to PHP20.6 billion in the first six months of 2022 from PHP10.7 billion in the first six months of 2021. The increase is due to the 80% growth of mall rental income to PHP18.6 billion in 2022 from PHP10.3 billion in 2021. Given the more relaxed community quarantine in major key areas in the Philippines during the reported period, SM Prime’s cinemas, event ticket sales, and other revenues grew to PHP2.0 billion from PHP0.5 billion. SM Prime’s China mall business revenue reached RMB0.39 billion in the first half of 2022, almost the same level in 2021.
SM Prime’s residential business group, led by SM Development Corp. (SMDC), reported PHP18.2 billion in revenues in the first half of 2022, 25% lower than PHP24.5 billion in the first half of 2021. The decrease in revenue was partly due to canceled sales as an effect of the lapse of Bayanihan Act, which gave a reprieve to unit buyers during the height of the pandemic, affecting the entire industry. The economic uncertainty brought about by the pandemic also contributed to the decline in revenue.
SMDC’s reservation sales grew by 49% in unit sales to 12,327 this year from 8,269 last year. This translates to 8% increase in reservation sales to PHP59.4 billion in January to June of 2022 from PHP55.1 billion in the same period last year.
SM Prime’s other key businesses, which include offices, hotels, and convention centers, recorded a 49% growth in revenues to PHP4.5 billion in the first half of 2022 from PHP3.0 billion in the first half of 2021. The Company’s office business segment recorded PHP2.8 billion revenues, 14% higher than the same period last year, while the hotels and convention centers business segment’s revenues are at PHP1.7 billion, 205% higher from the first half of last year.
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 8862 7940
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