MANILA, Philippines — Mall developer SM Prime Holdings Inc. recorded a 17 percent increase in its consolidated net income in the nine months to September.
Net earnings rose to P23.44 billion from P20.05 billion a year ago as consolidated revenues climbed 15 percent to P74.56 billion.
In the third quarter alone, SM Prime reported a 20 percent net income growth to P6.82 billion. Revenues likewise grew 16 percent to P24.79 billion.
SM Prime president Jeffrey Lim said the continuous growth is a result of the company’s strategic expansion in various developing cities in the country.
“Through the solid performances of our core businesses, we are positive that we will deliver the net income growth we committed when we integrated five years ago. We intend to keep this growth trajectory to enrich more lives in the communities that we serve and deliver more sustainable integrated developments for the betterment of our country,” Lim said.
By segments, mall revenues, which accounted for 58 percent of SM Prime’s nine-month total recorded a 12 percent increase to P43.26 billion.
SM Prime has 78 malls - 71 in the Philippines and seven in China - with a total gross floor area (GFA) of 9.5 million square meters (sqm).
The company has opened four malls during the period namely SM Center Imus in Cavite, SM City Urdaneta Central in Pangasinan, SM City Telabastagan in Pampanga and SM City Legazpi in Albay.
It is scheduled to launch SM Center Ormoc in Leyte in the fourth quarter, along with LUXE Duty Free in the Mall of Asia complex, which is an additional upscale shopping destination in the bay area.
SM Prime’s residential group, meanwhile, reported a 23 percent growth in revenues to P25.26 billion. The increase was primarily due to higher construction accomplishments of new projects launched in 2015 to 2017.
Strong demand fuelled by international buyers, overseas Filipinos’ remittances and rising disposable income of the emerging middle class continued to support the residential segment, Lim said.
SM Prime’s Commercial Properties Group (CPG) and SM Hotels and Convention Centers (SMHCC), meanwhile, posted a combined revenue growth of seven percent to P6.17 billion.
Moving forward, SM Prime is set to launch the campus-office building named NU Tower, and the FourE-Com Center, both in the Mall of Asia complex, Pasay City in the coming years, including the expansion of Park Inn – Clark in Pampanga and two new hotels.