PROPERTY developer SM Prime Holdings, Inc. reported an 18-percent growth in its consolidated net income to P38.1 billion in 2019 from P32.2 billion in 2018.
Consolidated revenues increased by 14 percent to P118.3 billion from P104.1 billion in 2018, while consolidated operating income went up by 17 percent to P56.7 billion from P48.3 billion of the same period being reported.
“SM Prime’s continuous growth was brought about by our strategic expansion in the country’s developing cities. We look forward to 2020 as we strengthen our presence in more key areas in the Philippines through sustainable integrated property developments that have great potential to further contribute to the growth of the overall economy,” SM Prime president Jeffrey Lim said in a statement issued Monday, February 17, 2020.
For 2020, the developer targets to open three to five new malls in key provincial cities.
It is also scheduled to launch 15,000 to 20,000 residential units in high-rise buildings, mid-rise buildings and single detached house and lot projects.
The company will also launch the first tower and podium of FourE-Com Center which will add more than 110,000 square meters of gross floor area (GFA).
In the hospitality sector, SM Prime will open one Park Inn by Radisson in Bacolod and expand the existing Park Inn by Radisson in Clark.
SMX Clark and Olongapo City Convention Center are also set to open in 2020 and these will add to the company’s hotels and convention center’s portfolio.
Mall Operations
SM Prime’s mall business in the Philippines recorded an 8.0 percent increase in revenues to P57.8 billion in 2019 from P53.5 billion in 2018.
This was mainly driven by the 7.0 percent same-mall-sales growth across all mature malls. The cinema and event ticket sales reported a 6.0 percent growth to P5.5 billion in 2019 from P5.2 billion in 2018, while revenues from amusement, merchandise sales and others went up by 15 percent to P3.9 billion in 2019 from P3.4 billion in 2018.
Total operating income in Philippine malls improved by 9.0 percent to P32.4 billion in 2019 from P29.8 billion of the previous year.
SM Prime has 74 malls in the Philippines offering 8.5 million sq.m. of gross floor area (GFA) and seven malls in China with 1.3 million sq.m. of GFA as of yearend 2019.
Residential Developments
SM Prime’s residential group, led by the company’s primary residential business, SM Development Corporation (SMDC), recorded a revenue growth of 24 percent to P45.2 billion in 2019 from P36.5 billion in 2018.
Consolidated costs of real estate sales increased 17 percent to P20.8 billion in 2019 from P17.8 billion in 2018.
The operating income went up by 39 percent to P17.1 billion from P12.3 billion of the period under review.
Growth was due to higher construction accomplishments of projects such as Cheerful Residences, Green 2 Residences, Trees Residences, Hope Residences, Charm Residences and Bloom Residences, as well as fast take-up of various Ready-For-Occupancy (RFO) projects, particularly those located within the Mall of Asia Complex, Pasay City and Makati City.
SMDC’s reservation sales grew by 24 percent to P90 billion in 2019 from P72.3 billion in 2018. In terms of unit sales, it increased by 11 percent to 23,424 from 21,157.
The strong sales take-up came from projects namely Glam Residences, Sail Residences, Lane Residences and Style Residences.
Other Business Segments
SM Prime’s other business segments registered a combined revenue growth of 14 percent to P9.6 billion in 2019 from P8.4 billion in 2018.
Combined operating income increased by 23 percent to P4.9 billion from P4 billion.
The Commercial Properties and the Hotel and Convention Centers business segments’ growth is attributed to the full-year revenue contribution of ThreeE-Com Center, the opening of NU Mall of Asia (NUMA), as well as the opening of Park Inn by Radisson hotels in Iloilo and North EDSA, Quezon City.
SM Prime has a total of 12 office buildings with a combined GFA of 695,000 sqm., eight hotels with over 1,900 rooms, four convention centers and three trade halls as of yearend 2019. (From PR)