SY-LED property developer SM Prime Holdings, Inc. posted an 11% growth in its attributable net income to P11.7 billion for the first quarter, compared to P10.5 billion a year ago, driven by its malls and residential segments.
Consolidated net income grew by 11% to P11.9 billion from P10.7 billion last year, SM Prime said in a statement on Tuesday.
Total revenue increased by 7% to P32.8 billion from P30.7 billion on higher rental income, revenue recognition of real estate sales, and other revenue.
Earnings before interest, taxes, depreciation, and amortization rose by 12% to P20.2 billion, while operating income went up by 13% to P16.7 billion.
“Our portfolio is off to a strong and promising start this year. Malls, offices, hotels and convention venues, and even residences, posted gains in the first quarter. This speaks to both the resilience of domestic demand and the strength of our integrated development strategy,” SM Prime President Jeffrey C. Lim said.
The malls business was the largest profit contributor, accounting for 69% of total earnings. It posted a 13% income growth to P8.1 billion on increased foot traffic, high occupancy, and growing interest in experiential offerings.
Residential earnings went up by 4% to P2.1 billion, equivalent to 18% of net income, led by higher revenue recognition from completed projects and prior-year sales.
Earnings of the office and warehouse segment rose by 15% to P1.2 billion, accounting for 10% of total net income, driven by improved occupancy and prudent cost management.
The hotels and convention centers business saw a 17% profit growth to P362 million on higher room bookings and a robust calendar of meetings, incentives, conferences, and exhibitions.
“While external uncertainties persist, our focus remains on disciplined execution and staying the course,” Mr. Lim said.
“We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders,” he added.
As of March, SM Prime’s total assets rose annually to P1.05 trillion. Capital expenditure reached P19.3 billion, with the majority allocated to development.
“We do not give full-year guidance but, if you look at the first-quarter results, we are confident and optimistic that we can sustain this, given the developments that we are planning in the next nine months,” Mr. Lim said during a separate briefing in Pasay City.
SM Prime shares fell by 1.29% or 30 centavos to P22.90 apiece on Tuesday. — Revin Mikhael D. Ochave
