Sy-blings property arm sustains healthy growth with 21% jump in profit as shoppers start crowding malls again

SM Prime Holdings, one of the largest integrated property developers in Southeast Asia, reported steady and sound growth in the first half of the year with net earnings rising 21 percent to P14.1 billion on the back of strong rental revenues.

In a regulatory filing, SM Prime said consolidated revenues climbed to P46.3 billion while operating income grew 33 percent to P21.4 billion.

“The growing domestic demand over the past period kept SM Prime’s financial growth steady as reported in our first half of 2022 results. We are optimistic that despite the global economic slowdown, the local economy will continue to benefit from the sustained growth in remittances from overseas Filipino workers (OFWs), the business process outsourcing (BPO) industry, as well as the increase in local travel and tours activities,” SM Prime president Jeffrey Lim said.

Revenues from the Philippine mall business jumped 92 percent to P20.6 billion, accounting for 44 percent of the total revenues. This was driven by the 80 percent surge in mall rental income to P18.6 billion.

As restrictions continue to ease, consumers returned to movie theaters as SM Prime’s revenues from cinemas and event tickets surged four-fold to P2 billion.

The China mall business registered RMB0.39 billion in revenues, nearly the same as last year.

The group’s residential business under SM Development Corp., however, had a weak output as revenues declined 25 percent to P18.2 billion owing to canceled sales as an effect of the lapse of Bayanihan Act, which gave a reprieve to unit buyers during the height of the pandemic.

SMDC’s reservation sales, however, jumped 49 percent to 12,327 units this year, bringing the six-month total to P59.4 billion or an increase of eight percent year on year.

Revenues from offices, hotels, and convention centers surged 49 percent to P4.5 billion. Of the total, the office business accounted for P2.8 billion or 14 percent higher than the same period last year.

The hotels and convention centers division saw revenues soar 205 percent to P1.7 billion.