SM Prime's residential sales take-up surge 31% in Q1

SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported P6.5 billion consolidated net income in the first quarter of 2021, on the back of P20.8 billion consolidated revenues. 

The ccompany registered a strong quarter-on-quarter net income performance posting an almost 80% growth from P3.6 billion in the last quarter of 2020, while consolidated revenues remain almost the same from the previous quarter.

The reopening of many businesses and increased mobility of people given the localized community quarantine measures drove the slight recovery of the company from the impact of COVID-19.

“We welcomed 2021 with high hopes as most areas in the Philippines, including Metro Manila, were placed under GCQ in the first quarter of 2021. 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 C. Lim said.

SM Prime’s residential business, led by SM Development Corp. (SMDC), reported a 5% revenue growth to P11.9 billion in the first three months of 2021 from P11.4 billion in the same period last year. This accounts for 57% of the company’s consolidated revenues. 

The group’s operating income likewise improved by 9% recording P5.1 billion in the first quarter of 2021 from PHP4.6 billion of the same period under review.

SMDC’s reservation sales surged by 31% in the first quarter of 2021 to P32.4 billion from P24.8 billion in first quarter of 2020. 

The newly launched residential projects that are located in Metro Manila such as Gold Residences in Parañaque City, South 2 Residences in Las Piñas City, Mint Residences in Makati City, Sands Residences in Manila City and Sail Residences in Pasay City accounted for almost 70% of the reported reservation sales.

The company aims to launch 15,000 to 20,000 residential units in 2021.

SM Prime’s local mall business, which accounts for 28% of the consolidated revenues, reported P5.9 billion in the first three months of the year, 10% higher from the previous quarter’s P5.3 billion. The growth is due to the increase of operating mall tenants, which drove mall rental income up by 14% to PHP5.6 billion in the first quarter of 2021 from P4.9 billion in last quarter of 2020.

Meanwhile, SM Prime’s China malls registered a 53% growth in revenues to RMB199 million in the first quarter of 2021 from RMB130 million in the same period last year. 

The positive growth of the company’s international malls signals return to normal operations after the government-imposed lockdown last January 2020.

Subject to local government units’ (LGUs) guidelines and prevailing quarantine classification, the Company intends to launch three new malls this year namely SM City Daet in Camarines Norte, SM City Roxas in Capiz and SM City Grand Central in Caloocan City. 

These new malls, plus the expansion of the Company’s existing malls, will provide an addition of almost 270,000 sqm of gross floor area (GFA) in retail space.

SM Supermalls recently signed partnership with various LGUs nationwide to be the venue for their COVID-19 vaccination program. This includes SM City Sucat, SM City North EDSA and SM Mall of Asia in Metro Manila; SM City Marilao, SM City Cauayan, SM City Cabanatuan, SM City Olongapo Central, SM Center Tuguegarao Downtown, SM City Masinag, SM City Rosario, SM City Calamba, SM City San Pablo, and SM Center Lemery in Luzon; SM City Iloilo, SM Seaside City Cebu, and SM Center Ormoc in the Visayas; and SM City General Santos in Mindanao.

“SM Group is closely coordinating with more LGUs as we prepare to roll out more vaccination centers nationwide to help expedite the administration of COVID-19 vaccines and contain the spread of the virus,” Mr. Lim added.

SM Prime’s other business segments, which include offices and hotels and convention centers contributed P1.6 billion to the Company’s consolidated revenues. This accounts for 7% of the Company’s consolidated revenues. The Commercial Properties Group (CPG), which manages the Company’s office business, continues to operate at optimal level, while the Company’s hotels and convention centers’ operations follow guidelines set by the COVID-19 Inter-Agency Task Force (IATF).

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.