SM Prime profit hits record P11.7B
Steady growth across all its business segments buoyed the first-quarter earnings of SM Prime Holdings Inc. by 11 percent to a record P11.7 billion.
This was achieved as the company banked on strong consumption to combat the negative impact of global trade tensions.
Jeffrey Lim, president of SM Prime, told reporters on Tuesday they were “confident and optimistic that we can sustain this [growth], given the developments that we are planning in the next nine months.”
The real estate giant’s top line reached P30.7 billion, up by 7 percent versus the same period last year on the back of higher rental income.
Malls were the main income driver, accounting for 69 percent of the group’s total. The segment saw a 13-percent jump in earnings to P8.1 billion due to higher foot traffic, high occupancy and growing demand for experiential offerings.
Earnings from the residential segment increased by 4 percent to P2.1 billion on higher revenue recognition from completed projects. This accounted for 18 percent of SM Prime’s bottom line.
First-quarter reservation sales were slashed by nearly half to P11.6 billion. Chief finance officer John Nai Peng Ong said this was due to SM Prime not launching any new project, to focus on selling existing inventory.
Meanwhile, the office and warehouse segment added 10 percent to total income. Earnings jumped by 15 percent to P1.2 billion as stronger occupancy and cost management provided a boost.
Strong room bookings and MICE (meetings, incentives, conferences and exhibitions) events lifted the earnings of hotels and convention centers by 17 percent to P362 million. This was equivalent to 3 percent of the group’s total.
SM Prime likewise declared record-high cash dividends of P13.86 billion, or P0.48 per share. Dividends will be payable on May 25 to shareholders of record as of May 14, SM Prime said.
At the same time, Belle Corp., the portfolio firm of the SM Group, booked a 5-percent increase in its net income with P462.4 million.
While revenues ended lower by 1 percent to P1.3 billion, lower costs and expenses helped lift earnings.
The revenues of Belle, which is engaged in gaming and leisure, from leasing City of Dreams Manila to Melco Resorts and Entertainment (Philippines) Corp. was at P588 million in the January to March period, up by 1 percent.
Subsidiary Premium Leisure Corp. (PLC) also saw an 8-percent climb in its share in gaming revenue at the resort and casino to P432.6 million.
Belle owns 99.55 percent of PLC, which exited from the local bourse last year after a decade.
Meanwhile, revenues from real estate operations declined by 6 percent to P739.7 million as gains from Tagaytay Highlands complex, one of Belle’s flagship projects, dipped by a third to P151.7 million.
