SM Prime posts P6.5 billion net income as restrictions ease in Q1

ABS-CBN News

Posted at May 03 2021 05:37 PM

MANILA - SM Prime Holdings Inc said Monday it posted a consolidated net income of P6.5 billion in the first quarter of 2021 on the back of a slight recovery in residential and retail segments.

Consolidated revenues reached P20.8 billion as mobility increased as COVID-19 restrictions were eased during the period, the Sy-led group said in a disclosure to the stock exchange.

“Along with the sustained growth of our residential business, our mall affiliates together with many of our SME-partners were able to reopen their shops, allowing our mall business segment to perform better,” SM Prime President Jeffrey Lim said.

Its residential business led by SM Development Corp posted a revenue of P11.9 billion, representing a 5 percent revenue growth for the first 3 months of the year. Operating income also improved by 9 percent to P5.1 billion, it said.

Reservation sales surged by 31 percent in the first quarter to P32.4 billion from P24.8 billion in the same comparable period, SM Prime said.

This year, SM Prime said it plans to launch 15,000 to 20,000 residential units. 

Its mall business, which accounts for 28 percent of the consolidated revenues, reported P5.9 billion in revenues in the first 3 months of the year, 10 percent higher compared to the previous quarter. Revenues were driven by an increase in operating mall tenants which also drove mall rental income up 14 percent to P5.6 billion from P4.9 billion in the previous quarter, it said.

SM Prime said its China malls posted a 53 percent growth in revenues for the period signaling international malls' return to normal operations.

SM Prime said it plans to launch 3 new malls this year in Camarines Norte, Capiz and Caloocan City subject to local government guidelines, adding almost 270,000 sqm of gross floor area in retail space. 

The Sy led group recently partnered with LGUs to offer more vaccination centers nationwide.

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