Shopping mall operator SM Prime Holdings Inc. said its income last year declined by more than half to P18 billion, from P38.1 billion in 2019, as rental earnings fell due to the lockdown measures.
Consolidated revenues for the period dropped by 30 percent to P81.9 billion from the previous P118.3 billion.
“SM Prime remains committed in its effort to support the national government and other organizations to contain and combat the spread of Covid-19 in the country,” said Jeffery C. Lim, SM Prime president.
“As our core businesses slowly recover from the contraction brought about by community quarantines, our company will continue providing avenues that will further enhance and facilitate these collective efforts with various organization, while sustaining our assistance to our employees, business partners and the communities we serve.”
SM Prime’s Philippine mall business reported P23.6 billion revenues some 59 percent lower from P57.8 billion in 2019. Local malls’ rent income is P21.8 billion in 2020 and is just about half of the P48.4 billion it had in 2019, it said.
The company launched SM City Butuan and SM City Mindpro, both in Mindanao, in the last quarter of 2020 with safety protocols in place to provide basic needs and services to the communities in the region.
Its residential business, led by SM Development Corp. posted a 6-percent increase in revenue to P46.5 billion last year from P43.7 billion in the previous year. Operating income also rose by 16 percent to P19.7 billion from P17 billion.
Reservation sales grew 10 percent, bringing the sales take-up to P99 billion last year, from P90 billion in the previous year.
“We are optimistic, that together as one, we will all rise from this challenge and look forward to a better year. We encourage our fellow Filipino to keep supporting our local businesses while practicing safety protocols at all times,” Lim said.
The company’s commercial properties business segment reported P4.8 billion revenues in 2020 almost flat from the previous P4.6 billion. The business’ operating income reached P3.9 billion from the previous year’s P3.8 billion.
SM Prime’s hotels and convention centers business segment recorded P1.6 billion revenues for the year, or just a fraction of the P5.1 billion revenues in 2019. The company opened Olongapo City Convention Center in Zambales last year.