Shopping mall operator SM Prime Holdings Inc. on Monday said its net income rose 12 percent to P11.6 billion in the first semester, from P10.4 billion last year, thanks to its residential business.
For the April to June quarter alone, the company reported that its income grew more than double to P5.2 billion from last year’s P2.1 billion.
However, its consolidated revenues in the first semester declined by 6 percent to P41.1 billion, from P43.7 billion last year.
“In these challenging times, we are committed more in providing a safe environment to all our stakeholders by strict observance of health and safety protocols across all our developments. Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide as well as providing free inoculation to thousands of our employees,” SM Prime President Jeffrey C. Lim said.
The company said its residential business continued to improve in the first half, as well as its shopping malls business in the second quarter of the year despite the reimplementation of stricter community quarantine from March to May in key areas, such as Metro Manila and nearby provinces.
SM Prime’s residential business, which now accounted for 60 percent of SM Prime’s consolidated revenues and led by SM Development Corp., registered a 3-percent increase in revenues to P24.5 billion in the first six months of 2021 from P23.7 billion a year ago.
Its operating income improved by 8 percent to P10.4 billion in the first half from P9.7 billion last year.
SMDC’s net reservation sales rose by 30 percent to P55.1 billion in the first semester from P42.4 billion last year.
Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the national government.
SM Prime’s domestic shopping malls business now only accounts for 26 percent of the consolidated revenues.
For the first half, the malls business reported P10.7 billion in revenues, down by 26 percent from the previous P14.4 billion as the reimplementation of the strictest quarantine classification in the Metro Manila and the nearby provinces of Bulacan, Cavite, Laguna and Rizal from March to May slowed mall activities.
It registered revenues of P4.8 billion for the second quarter alone, a 55-percent increase from the P3.1 billion recorded in 2020.
The company’s shopping malls in China recorded a 48-percent growth in revenues to P3 billion from last year’s P2 billion.
SM Prime’s other business segments, which include hotels and convention centers, contributed P3.1 billion to the company’s consolidated revenues. SM Prime opened the south wing of Park Inn by Radisson Clark in the first half, which added 100 new rooms to the company’s hotel portfolio.