SM Prime Holdings, Inc., the Philippines’ leading integrated property company, reported a 12 percent growth in core net income the first quarter of 2016 to P5.8 billion while consolidated revenues rose 10 percent to P18.2 billion.
 
“SM Prime’s massive expansion last year propelled our performance this quarter. Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” said SM Prime president Hans T. Sy.
 
In the first quarter of the year, mall revenues surged 11 percent to P11.0 billion from P9.9 billion in the same period of 2015. Mall revenue alone accounted to 60 percent of SM Prime’s consolidated revenue, for which 85 percent of it comes from rental income.
 
Growth was largely driven by new malls and expansion of existing malls in 2015. Excluding the new malls and expansions, same-store growth averaged 7 percent.
 
To date, SM Prime has a total of 57 malls in the Philippines and six in China with total retail space of 8.4 million sqm.
 
The company is set to open four more malls this year namely, SM City Trece Martires, SM City East Ortigas, Cherry SM Congressional and Cherry SM Antipolo. SM Prime also intends to expand its existing malls namely SM City Calamba and SM City Naga.
 
SM Prime’s residential group, which contributed 32 percent of consolidated revenues, posted revenues of P5.8 billion in the period being reviewed, up 5 percent.
 
The increase can be traced by the higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015.
 
This was also supported by the increase in sales take-up in M Place Residences, Field Residences and Jazz Residences in the cities of Quezon, Parañaque, and Makati.
 
The Commercial Properties Group, accounted for 5 percent of consolidated revenues, soared 16 percent to P1 billion in revenues. The growth was complemented by the opening of SM Cyber West and Five E-Com Center, with a combined GFA of 171,000 sqm.
 
The hotels and convention centers business grew by 22 percent in the first quarter of 2016 to P617 million in terms of revenue. The growth was propelled by an improvement in the average room and occupancy rates which was supplemented by the opening of 154-room Park Inn Clark in Pampanga. SM Prime will unveil the 347-room Conrad Manila in second half 2016.