Property developer SM Prime Holdings Inc. said Monday net income grew 18 percent in 2019 to P38.1 billion from P32.2 billion in 2018 on the back of a steady growth in mall and residential revenues.
SM Prime said in a disclosure to the stock exchange consolidated revenues climbed 14 percent to P118.3 billion in 2029 from P104.1 billion in 2018. Consolidated operating income rose 17 percent to P56.7 billion from P48.3 billion a year earlier.
“SM Prime’s continuous growth was brought about by our strategic expansion in the country’s developing cities. We look forward to 2020 as we strengthen our presence in more key areas in the Philippines through sustainable integrated property developments that have great potential to further contribute to the growth of the overall economy,” SM Prime president Jeffrey Lim said.
Revenues from mall operations rose 8 percent to P57.8 billion in 2019, driven by a 7-percent increase in same-mall-sales growth across all mature malls.
The cinema and event ticket sales booked a 6-percent growth to P5.5 billion in 2019 while revenues from amusement, merchandise sales and others went up by 15 percent to P3.9 billion.
Philippine mall operating income improved by 9 percent to P32.4 billion from P29.8 billion in the previous year.
SM Prime ended 2019 with 74 malls in the Philippines offering 8.5 million square meters of gross floor area and seven malls in China with 1.3 million sq. m.
The property developer plans to open three to five new malls in key provincial cities in the country this year.
Residential arm SM Development Corp. recorded a revenue growth of 24 percent to P45.2 billion in 2019 from P36.5 billion in 2018. SMDC’s operating income went up by 39 percent to P17.1 billion from P12.3 billion on higher construction accomplishments of projects.
Reservation sales soared 24 percent to P90 billion in 2019. Unit sales increased by 11 percent to 23,424 from 21,157.
SMDC plans to launch 15,000 to 20,000 residential units in 2020 that include high-rise buildings, mid-rise buildings and single-detached house and lot projects.
SM Prime’s other business segments including office and hotel businesses registered a combined revenue growth of 14 percent to P9.6 billion in 2019 from P8.4 billion in 2018.
SM Prime had a total of 12 office buildings with a combined GFA of 695,000 sq. m., eight hotels with over 1,900 rooms, four convention centers and three trade halls as of end-2019.
The company said it would launch this year the first tower and podium of FourE-Com Center which would add more than 110,000 sq. m. of GFA to its office portfolio. It would also open Park Inn by Radisson in Bacolod and expand the existing Park Inn by Radisson in Clark.
SMX Clark and Olongapo City Convention Center are also set to open in 2020.
