SM Prime 9-month income down 48 pct, core business sees 'slight recovery' as restrictions ease

ABS-CBN News

Posted at Oct 26 2020 04:05 PM | Updated as of Oct 27 2020 12:04 AM

SM Seaside City, Cebu. Handout

MANILA - SM Prime Holdings on Monday said its net income for January to September was at P14.4 billion, down 48 percent from its year ago figure as malls and other commercial establishments continue to reel from the impact of the pandemic. 

“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to reopen more industries to help the economy going in to the second half of the year. We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter. Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy,” said SM Prime president Jeffrey Lim.

Consolidated revenue reached P60.7 billion or 29 percent lower.

SM Prime’s Philippine mall business registered P18.3 billion in revenue, down 57 percent while local malls’ rental income saw a 52 percent drop to P16.8 billion for the 9-month period.

SM Development Corp. (SMDC), its residential business arm however, recorded a 7 percent increase in revenue to P34.2 billion with an operating income of P14.1 billion. Reservation sales also grew.

"With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units in its inventory while continuously offering its ready-for-occupancy (RFO) units of 1,650 units, down from 2,292 units in the same period being reviewed," it said.

The hotels and convention centers business segment registered P1.3 billion in revenue for the January to September period, as it started to cater to a wider market with the easing of restrictions in some areas.

Its commercial properties business posted P3.7 billion in revenue for the same period.

“As we work together to bounce back from these challenges, SM Prime will stay committed to finding solutions to serve the ever-changing needs and aspirations of its customers, while providing growth to all our stakeholders and maintaining a safe and healthy environment for everyone,” said Lim.

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