SM Prime Holdings Inc. said its core income rose 12 percent during the first quarter of the year to P5.8 billion, while consolidated revenues rose 10 percent to P18.2 billion, from the previous year’s P16.6 billion.
“SM Prime’s massive expansion last year propelled our performance this quarter. Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” SM Prime President Hans Sy said.
During the period, the company’s revenues from shopping malls surged 11 percent to P11 billion, from P9.9 billion the previous year.
Mall revenues accounted for 60 percent of SM Prime’s consolidated revenue, of which 85 percent came from rental income. Growth was largely driven by new malls and expansion of existing malls in 2015, including its new property in South Road Property in Cebu, Cabanatuan, San Mateo in Rizal, Sangandaan in Caloocan and Iloilo. These have a total gross floor area of 738,000 square meters.
Excluding the new malls and expansions, same-store growth averaged 7 percent, the company said.
SM Prime’s residential group, which contributed 32 percent of consolidated revenues, posted revenues of P5.8 billion in the period, an increase of 5 percent due mainly to higher construction completion of SM Development Corp. projects launched in 2013 to 2015.
These are its projects in Quezon City, Pasay and Makati. This was also supported by the increase in sales in its projects in Quezon City, Parañaque and Makati.
Consolidated costs of real estate rose 2 percent to P2.9 billion mainly due to higher revenues recognized in real-estate sales.
SM Prime currently has 28 residential projects in the market in Metro Manila and Tagaytay. SM Prime has already launched two new projects and an expansion of existing development equivalent to 4,000 units in Las Piñas, Bicutan and along Roxas Boulevard.
For the rest of the year, SM Prime is still set to launch an additional 10,000 to 12,000 units in the Mall of Asia Complex in Pasay, and also in Tagaytay, Quezon City, Bulacan, Cavite and Cabanatuan.
The commercial properties group, which accounted for 5 percent of consolidated revenues, soared 16 percent to P1 billion in revenues.
The hotels and convention centers business grew 22 percent to P617 million in revenue, mainly propelled by an improvement in the average room and occupancy rates. During the period, a 154-room Park Inn Clark in Pampanga was opened, while the company will unveil the 347-room Conrad Manila in the second half of 2016.
To date, SM Prime has a total of 57 malls in the Philippines and six in China, with total retail space of 8.4 million sq m. This includes the newly opened San Jose del Monte in Bulacan, with a GFA of 101,000 sq m. The company is set to open four more malls this year, including Trece Martires in Cavite, East Ortigas, Congressional Avenue in Quezon City and in Antipolo.
SM Prime also intends to expand its existing malls in Calamba and in Naga.