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Wednesday, November 4, 2015

Rental revenue lifts SM Prime's profit by 70%

SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, booked a whopping 70-percent surge in profit in the first nine months of 2015 on the back of the growth in rental revenues.

Its consolidated net income reached P22.9 billion in January to September from P13.47 billion during the same period last year.

This was inclusive of the P7.4-billion one-time trading gains on marketable securities booked in the first quarter of the year.

On a recurring basis, net income surged by 15 percent to P15.5 billion in the first nine months.

Consolidated revenues rose nine percent to P52.2 billion after third-quarter earnings reached P16.2 billion.

“SM Prime’s expansion across all its various business portfolios since 2013 has driven its strong financial performance this year. We expect SM Prime’s growth to be sustained as we continue to increase our mall footprint by 13 percent this year. We are excited to launch SM Seaside Cebu later this year, a landmark project in the Visayas region. We see Metro Cebu as one of our important growth corridors following our growth track in Metro Manila,” SM Prime President Hans T. Sy said.

Rental revenues from retail and commercial spaces, which contributed 56 percent to the consolidated revenues, increased by 11 percent to P29.4 billion from P26.4 billion.

The growth in rental revenues was mainly driven by rising contribution from the new malls and the expansion of shopping spaces in existing malls in 2013 and 2014.

SM Prime’s real estate sales, which account for 32 percent of the consolidated revenues, grew by 4 percent to P16.6 billion, mainly due to higher sales take-up and construction accomplishment of SMDC projects.

It maintained a total of 52 malls in the Philippines and six malls in China in the first nine months with total retail space of 7.6 million square meters.

SM Prime is set to open its regional landmark, SM Seaside City Cebu, later this month. It is also expanding two existing malls --SM City Lipa in Batangas and SM City Iloilo.

By the end of 2015, SM Prime will have 55 malls in the Philippines and six malls in China with an estimated combined GFA of 8.3 million sqm.

It currently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay.

Meanwhile, the Commercial Properties Group has five office buildings with an estimated gross floor area of 318,000 square meters. Five E-com Center will be formally launched this month.

- Interaksyon