Shopping mall operator SM Prime Holdings Inc. reported net income of P19.4 billion in the first half, 38 percent higher than only P14.1 billion last year.
Revenue grew 29 percent for the period to P59.9 billion from P46.3 billion.
For the second quarter alone, the company reported a 49 percent increase in net income to P10 billion from P6.7 billion last year on the back of a 39 percent growth in consolidated revenue to P31.2 billion from P22.5 billion last year.
“The strong performance of SM Prime’s main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry. We will continue to be strategic in expanding our footprint and operations across different localities where we can continue to be partners for growth and progress,” SM Prime president Jeffrey Lim said.
SM Prime’s Philippine mall revenue posted a 30 percent growth in the second quarter to P16.1 billion from P12.4 billion last year.
In the first half, its local mall business grew 53 percent higher to P31.5 billion from P20.6 billion last year.
This accounts for 53 percent of SM Prime’s consolidated revenue. Rent income grew by 42 percent year-on-year to P26.3 billion from P18.6 billion, as improvement in tenant sales and foot traffic continues.
SM Prime’s local cinema, ticket sales and other revenue improved to P5.2 billion in the first half, 156 percent higher than only P2 billion in 2022. SM Prime’s China mall business reported RMB398 million in revenues in the first six months, almost flat from last year’s RMB385 million.
SM Prime’s primary residential business, led by SM Development Corp, reported P9.9 billion in revenue in the second quarter, 82 percent higher than only P5.4 billion in the same quarter last year.
SMDC reservation sales in the second half of the year reached P68.5 billion, 15 percent higher than last year’s P59.4 billion. This translates to a 17 percent growth in unit sales in the first half.
The improving market condition provided local and overseas Filipino buyers capacity to invest in SM Prime’s residential projects.
“We are optimistic about the company’s full-year 2023 results given the improving market condition. SM Prime will also continue to look for new and sustainable ways of reaching our customers and provide them unparalleled experience and value in our developments,” Lim said.
SM Prime’s other business segments, which include offices, hotels, and convention centers, posted a 40 percent revenue growth to P6.2 billion in the first half from P4.5 billion in 2022.
