SM PRIME NETS P14.4B, DOWN 48%
SM Prime Holdings Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported PHP14.4 billion consolidated net income in the first nine months of 2020, down by 48 percent from PHP27.6 billion in the same period last year.
Consolidated revenue also declined by 29 percent to PHP60.7 billion from PHP85 billion.
“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to reopen more industries to help the economy going into the second half of the year. We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter. Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy,” SM Prime president Jeffery Lim said in a statement Monday.
In the January to September period, SM Prime’s Philippine mall business registered PHP18.3 billion revenue, 57 percent lower from last year’s PHP42 billion.
Local malls’ rental income recorded PHP16.8 billion, 52 percent lower from PHP35.1 billion in the same period last year.
SM Prime’s residential business, led by SM Development Corp. (SMDC), recorded a 7-percent increase in revenue in the first nine months of 2020 to PHP34.2 billion from PHP31.9 billion in the same period last year.
SMDC’s reservation sales have reached PHP66.7 billion in the first three quarters of 2020, slightly higher from last year’s PHP66.4 billion.
With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units in its inventory while continuously offering its ready-for-occupancy (RFO) units of 1,650 units, down from 2,292 units in the same period last year.
SM Prime’s commercial properties business reported PHP3.7 billion revenue in the first three quarters of the year, while the group’s operating income reached PHP3.3 billion.
Meanwhile, the company’s hotels and convention centers business segment registered PHP1.3-billion revenue for the first nine months of 2020 as it started to cater to a wider market with the easing of quarantine measures in key areas in the Philippines.