Shopping mall operator SM Prime Holdings Inc. on Monday said its income in January to September rose 9 percent to P15.6 billion from last year’s P14.4 billion, mainly as a result of strong sales posted by its residential business.
Revenues fell 6 percent to P56.8 billion from last year’s P60.7 billion, as its shopping mall business remained weak.
“SM Prime continues to develop new ways and solutions in its businesses by developing sustainable programs that provide safe and secure environment for all of its stakeholders. This is in line with our anticipation of welcoming more people in our establishments, primarily in our malls and other commercial facilities, where thousands of our partner-tenants can showcase their products and services this coming holiday season,” Jeffrey C. Lim, the company’s president, said.
SM Prime’s residential business, led by its condominium builder SM Development Corp. (SMDC), still accounts for more than half of SM Prime’s revenues at 56 percent. Consolidated revenues, however, were 6 percent lower to P32.1 billion, from last year’s P34.2 billion.
SMDC’s reservation sales reached P76.3 billion for the three quarters of the year, some 14 percent higher than the P66.7 billion it recorded last year. The strengthened online presence and continuous construction of SMDC projects boost its sales take up for the period, the company said.
SM Prime’s Philippine mall business, which now accounts for only 28 percent of the company’s consolidated revenues, recorded P15.8 billion in revenue for the period, 14 percent lower from last year’s P18.3 billion.
The reimplementation of stricter community quarantine in August 2021 affected the operation of the company’s local mall business, limiting the operation of non-essential shops in accordance with government-imposed guidelines, the company said.
Meanwhile, SM Prime’s China mall business has reported a 28-percent increase in revenue to 590 million yuan for the period from 460 million yuan last year.
SM Prime’s commercial properties business reported P3.8 billion in revenues for the period, almost flat from last year’s P3.7 billion.
The company’s hotels and convention centers business segment registered P900 million in revenues for the period, down by some 30 percent from last year’s P1.3 billion.