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SM Prime earns P28.3b

SM Prime Holdings Inc., the country’s largest property developer, said Monday net income surged 54 percent in 2015 to P28.3 billion, bolstered by a one-time extraordinary gain from the sale of marketable securities.

The company said excluding the P7.4 billion one–time trading gain, recurring income grew 14 percent year-on-year to P20.9 million, while consolidated revenues rose 8 percent to P71.5 billion.

“SM Prime sustained its overall net income growth in 2015 as the malls’ overall operations led the performance of the group. This is a reflection of the overall expansion of the economy that continues to be driven by the 6.2-percent growth in household consumption,” SM Prime president Hans Sy said.

Hans Sy

“We believe we could sustain this growth in 2016 as we continue to focus on enhancing the synergies across our core business units as an integrated property developer,” Sy said.

Rental revenues from malls and commercial spaces, which accounted for 57 percent of the consolidated revenues, climbed 12 percent to P40.7 billion from P36.5 billion in the previous year. 

SM Prime attributed the sustained growth in rental revenues to the group’s aggressive mall expansion as well as continued buildup of its office projects.

SM Prime’s real estate sales, which accounted for 31 percent of consolidated revenues, stood at P22.2 billion  in 2015. The flat performance was due to lower revenue recognition from the almost completed housing projects that were launched in 2011 and 2012, it said.

The property firm said newly launched projects of residential unit SM Development Corp. continued to enjoy brisk sales, with reservation sales growing 12 percent in 2015 to 14,390 units.

SM Development booked an 8-percent increase in net income to P5.1 billion in 2015 from P4.7 billion in 2014 .

SM Development will launch between 11,000 to 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia Complex this year. SM Prime is also set to launch new mixed-use developments in Bulacan, Pampanga and Cavite.

Meanwhile, cinema and event ticket sales, which represented 7 percent of consolidated revenues, recorded a 12-percent growth in 2015 to P4.8 billion. 

SM Prime operates a total of 56 malls in the Philippines with total retail space of 7.3 million square meters and six malls in China with a gross floor area of 900,000 square meters.

For hotels and convention centers, SM Prime said the Conrad Hotel Manila was expected to open in the second half 2016.

The 347-room hotel will further enhance the value of the properties within the whole Mall of Asia complex, SM Prime said.

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