SM Prime posts P6.6B net income in Q1, up 13 percent

Integrated property developer SM Prime Holdings Inc. posted a net income of P6.6 billion in the first quarter of 2017, up 13 percent from P5.8 billion a year earlier.

The double-digit growth in bottom line was driven by a 12 percent increase in consolidate revenue at P20.5 billion from P18.2 billion, the company told the Philippine Stock Exchange.

“Our strong performance in the first quarter gives us high confidence that we are on track to meet our growth targets in terms of revenues and income for the full year. As we continue our strategic roll-out of projects across our properties, we are optimistic that our growth will be sustained by the overall expansion of the Philippine economy,” SM Prime President Jeffrey Lim said.

The company reported an operating income of P9.6 billion, up 14 percent from P8.4 billion, mainly due to rental revenues from mall expansions in the past two years, higher real estate sales and construction accomplishments of residential projects since 2014.

Mall revenue, which accounts for 62 percent of total revenue, increased by 11 percent to P12.7 billion from P11.4 billion year-on-year.

SM Prime currently has 60 shopping malls in the Philippines and seven in China with a combined gross floor area of 9 million square meters.

The company is set to open five new malls in the Philippines this year.
The residential group posted a 6 percent revenue growth at P6 billion from P5.6 billion, contributing 29 percent to overall revenue. — Ted Cordero/VDS, GMA News