SM Prime net profit reaches P19.3B in H1
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Mon, 15 Jul 2019 16:12:41 +0000
LISTED SM Prime Holdings Inc.’s net income increased by 16 percent to P19.30 billion in the first half of 2019 from P16.62 billion in the same period last year, which it attributed to the stability of the Philippine economy.
In a disclosure on Monday, the Sy-led real-estate developer said its net profit for the second quarter also rose by 16 percent to P10.5 billion from P9.02 billion year-on-year.
Consolidated revenues jumped by 15 percent in the first semester to P57.05 billion from P49.77 billion and by 16 percent in April to June to P30.51 billion from P26.42 billion, it added.
“The country’s stable economy has helped SM Prime maintain its growth in all core businesses
for the first half of 2019,” SM Prime President Jeffrey Lim said in the statement.
“We are optimistic to sustain this growth moving forward as we launch new projects with the goal of providing more integrated property developments across the Philippines,” he added.
SM Prime’s mall division remained the top contributor to earnings at 55 percent, followed by its residential division at 38 percent. The remainder came from its other businesses.
During the first half of the year, the company saw an 8-percent increase in its mall income to P31.07 billion from last year’s P28.71 billion.
Rental revenues climbed to P26.22 billion from P24.49 billion, driven by a 7-percent same-mall-sales growth and the increasing contribution from newly opened malls in 2018.
Mall operating income improved by 10 percent to P17.45 billion from P15.9 billion, translating to a higher operating income margin of 56 percent from 55 percent the year before.
The residential segment saw its revenues surge by 26 percent to P21.43 billion from P17.05 billion on the back of the strong reception for its high-rise developments in Metro Manila.
Reservation sales alone rose by 20 percent to P41.46 billion from P34.45 billion. A total of 9,877 residential units were sold from January to June.
Other businesses, which included commercial properties, hotels and convention centers, reported a combined revenue growth of 13 percent in the first half to end at P4.63 billion, compared with P4.11 billion year-on-year.
Operating income grew by 18 percent to P2.34 billion from P1.99 billion, while its operating income margin rose to 51 percent from 48 percent in the same period.
SM Prime currently has 72 malls in the Philippines and seven in China with a gross floor area (GFA) of 9.3 million square meters; and 11 office buildings with a combined GFA of 642,000 sqm as of end-June.
SM Prime shares increased by 3.13 percent or P1.20 to close at P39.50 apiece on Monday.
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