MANILA -- SM Prime Holdings Inc. (SM Prime), one of the largest integrated property developers in Southeast Asia, booked a 17-percent increase in profit last year, driven largely by the strong performance of its shopping malls and residential businesses.
SM Prime told the local bourse on Monday its net income reached PHP32.2 billion in 2018 from PHP27.6 billion the previous year, while revenues grew by 14 percent to PHP104.1 billion from PHP90.9 billion,
It recorded a 16-percent increase in net income in the fourth quarter of 2018 to PHP8.7 billion from PHP7.5 billion during the same period in 2017.
“The successes and achievements we are reaping today are the hard work, strategy and partnerships we built five years ago when we consolidated all the key property companies of SM Group under SM Prime. Driven by our goal to deliver more innovative and sustainable lifestyle cities, SM Prime is aiming to sustain this growth trajectory in the coming years,” SM Prime President Jeffrey Lim said.
SM Prime’s mall revenues rose by 11 percent to PHP59.3 billion in 2018 from PHP53.2 billion the previous year, driven by rising contribution of rentals from new and expanded malls that were launched mostly in the developing provincial areas.
It has 72 malls in the Philippines offering 8.3 million square meters (sqm) of gross floor area (GFA), and seven malls in China with 1.3 million sqm of GFA as of year-end 2018.
SM Prime’s residential group, led by SM Development Corporation (SMDC), reported a revenue growth of 22 percent to PHP36.5 billion last year from PHP30 billion in 2017.
It is scheduled to launch between 15,000 to 18,000 residential units this 2019 that include high-rise buildings, mid-rise buildings, and single detached house and lot projects.
The rest of SM Prime’s businesses registered a combined revenue growth of 7 percent to PHP8.4 billion in 2018 from PHP7.9 billion of the previous year.
The Commercial Properties and the Hotels and Convention Centers business segments contributed a combined revenue growth of 18 percent in 2018. (PNA)
