MALL operator SM Prime Holdings Inc. said its recurring income grew 14 percent last year to P23.8 billion, from P20.9 billion in 2015.
Consolidated revenues grew 12 percent to P79.8 billion in 2016, from P71.5 billion the year before. Overall operating income rose by 12 percent to P35.3 billion in 2016, from P31.4 billion the prior year. Growth was mostly driven by the continued expansion of its malls, as well as the strong sales take-up of its housing units, the company said.
“SM Prime sustained its overall performance in 2016 by focusing more on its recurring-income stream complemented by the solid performance of the housing group. SM Prime is well positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country,” SM Prime President Jeffrey Lim said in a statement. Mall revenues grew by 9 percent to P48.6 billion, from the previous year’s P44.5 billion, as rentals improved by 10 percent.
The revenue growth was driven by additional retail spaces of 1.5 million square meters of gross floor area added in the past two years.
To date, SM Prime has 60 shopping malls in the Philippines, with 7.7 million sq m in gross floor area, and seven in China, with 1.3 million sq m.
For 2017, SM Prime will open at least four new malls in the Philippines with an estimated combined 300,000 sq m of additional shopping space.
Residential arm SM Development Corp. contributed 32 percent to consolidated revenues as it grew by 13 percent to P25.4 billion, from P22.5 billion in 2015.
Operating income also improved by 17 percent to P7.1 billion, from P6.1 billion, largely due to higher sales take-up on ready-for-occupancy units from projects.
Inventory for ready-for-occupancy units went down by 34 percent to 2,374 units in 2016, from 3,617 units in 2015. Reservation sales grew by 18 percent in terms of sales value to P46.7 billion in 2016, from P39.4 billion in 2015, translating to a 15-percent improvement on unit sales to 16,320 units, from 14,227 units.
The strong sales take-up was generated from projects within and near the Mall of Asia Complex in Pasay City.
For 2017, SM Prime is scheduled to launch between 15,000 and 18,000 residential units that include high-rise, mid-rise and horizontal house-and-lot developments.
SM Prime’s commercial properties group contributed 3 percent to consolidated revenues, recording a 32-percent increase to P2.7 billion, from P2.1 billion year-on-year.
Revenues of its hotels and convention centers posted a 32-percent growth to P3.2 billion, from P2.4 billion in 2015.