SM Prime's profit rises 11% in 1st quarter

Property developer SM Prime Holdings Inc. reported consolidated net income of P10.5 billion ($206 million) in the first quarter of 2024, an 11% increase from P9.4 billion ($184 million) a year earlier. The gain was driven by improvements across its business segments.

First-quarter consolidated revenue rose 7% to P30.7 billion ($601 million) compared with P28.6 billion ($558 million) in 2023, SM Prime said in a stock exchange filing Monday.

The company's mall business posted a 7% increase in revenue to P18.2 billion ($358 million). Malls accounted for 59% of overall revenue.

Mall rental income climbed 8% to P15.8 billion ($310 million), while other revenue, including cinema and event ticket sales, reached P2.5 billion ($49 million).

The company's primary residential business group recorded a 10% increase in revenue to P8.5 billion ($167 million) from P7.7 billion ($150 million) last year, accounting for 28% of overall revenue. Reservation sales reached P26.5 billion ($519 million) during the period.

Revenue from other business segments, including offices, hotels and convention centers, saw a 9% increase to P3.4 billion ($67 million). The company's office business unit reported P1.8 billion ($35 million) in revenue, while hotels and convention centers generated P1.6 billion ($31 million).

SM Prime's first-quarter consolidated operating income rose 6% to P14.7 billion ($289 million) from 13.8 billion pesos ($270 million) last year.

“We are encouraged by the performance of all our businesses this first quarter of 2024,” SM Prime President Jeffrey C. Lim said in a statement. “We are particularly bullish on our malls business as we plan to open a new mall this month and another three within the year.”

“For the residential business, our focus remains on addressing the housing backlog within the socialized and economic segments,” he said.