Southeast Asian property giant SM Prime Holdings, owned by Sy family, sustained its upward momentum in the second quarter, with net earnings growing 49 percent to P6.7 billion on buoyant sales from the residential segment and healthy revenues from the shopping mall business.
Consolidated revenues climbed 39 percent in the April to June period to P31.2 billion while operating income jumped 42 percent to P15.1 billion.
The strong Q2 performance boosted SM Prime’s first half profit to P19.4 billion, up 38 percent from P14.1 billion in 2022. The increase was driven by the 29 percent rise in consolidated revenues to P59.9 billion. Consolidated operating income climbed 36 percent to P29 billion.
“The strong performance of SM Prime’s main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry. We will continue to be strategic in expanding our footprints and operations across different localities where we can continue to be partners for growth and progress,” said SM Prime president Jeffrey Lim.
Revenues from SM Prime’s Philippine mall business rose 30 percent in the second quarter while its operating income increased by 27 percent to P8.8 billion. For the period spanning January to June, revenues soared 53 percent to P31.5 billion as rent income expanded by 42 percent P26.3 billion on the back of higher tenant sales and foot traffic.
The group’s residential business, led by SM Development Corp. (SMDC), saw its revenues jump 82 percent to P9.9 in the second quarter, bringing year-to-date total to P17.6 billion.
Reservation sales during the quarter went up by 15 percent to P68.5 billion, buoyed by strong demand from both local and overseas Filipino workers for SM Prime’s residential projects.
“We are optimistic about the company’s full-year 2023 results given the improving market condition. SM Prime will also continue to look for new and sustainable ways of reaching our customers and provide them unparalleled experience and value in our developments,” Lim said.
SM Prime’s other business segments, which include offices, hotels, and convention centers, chalked up a 40 percent jump in revenue to P6.2 billion in the first half.
