SM Prime Holdings, Inc. (SM Prime) reported an 8 percent year-on-year increase in third-quarter net income to PHP12.8 billion from PHP11.8 billion, driven by higher contributions from the mall and convention center segments.
The third quarter net profit lifted SM Prime’s nine-month profit to PHP37.2 billion, up 10 percent from PHP33.9 billion a year earlier.
“Our malls remain strong anchors for growth,” said SM Prime President Jeffrey C. Lim. “Their performance was driven by regional expansion, the upgrading of flagship malls, and the introduction of more experiential retail and dining concepts.”
Total revenues from January to September rose 4 percent to PHP103.4 billion from P99.8 billion. Malls accounted for 59 percent of consolidated revenues, increasing 7 percent to PHP61.0 billion from PHP57.3 billion due to the addition of leasable space and tenants.
The residential segment, covering both core and leisure projects, contributed over 31 percent of total revenues, easing 2 percent to PHP32.6 billion from PHP33.1 billion due to slower revenue recognition from mid-segment developments.
Hotels and Convention Centers registered the strongest growth at 9 percent, rising to
PHP6.0 billion from PHP5.5 billion on the back of higher MICE bookings. The segment contributed nearly 6 percent to consolidated revenues.
Revenues from Offices and Warehouses, which represented almost 4 percent of the total, remained steady at PHP4.0 billion, reflecting temporary tenant relocations during renovation works in two warehouses.
“The residential and office segments were tempered by macroeconomic conditions, but recovery initiatives are underway,” Lim added.
Capital expenditures reached PHP59.3 billion in the first nine months, an 11 percent increase from the same period last year, driven by ongoing mall and residential projects. The remainder went to estate, hotel and convention center developments.
SM Prime ended the period with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 7.1x. Total assets reached PHP1.08 trillion, with investment properties accounting for 60 percent, while cash and cash equivalents stood at PHP33.2 billion.
