SM Prime Reports 12% Increase in 1H2021 Net Income
(02 August 2021, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported PHP11.6 billion consolidated net income in the first six months of 2021, 12% higher from PHP10.4 billion in the first half of 2020. This is on the back of an improvement in second-quarter net income to PHP5.2 billion from PHP2.1 billion in the same period last year. First-half consolidated revenues were recorded at PHP41.1 billion, down 6% from PHP43.7 of 2020’s first half.
The reported improvement is due to the continued positive performance of the Company’s residential business in the first half of 2021, as well as the Company’s malls business in the second quarter of the year in spite of the effect of the reimplementation of stricter community quarantine from March to May 2021 in key areas such as Metro Manila and nearby provinces.
“In these challenging times, we are committed more in providing a safe environment to all our stakeholders by strict observance of health and safety protocols across all our developments. Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide as well as providing free inoculation to thousands of our employees,” SM Prime President Jeffrey C. Lim said.
SM Prime’s residential business, which accounted for 60% of SM Prime’s consolidated revenues and was led by SM Development Corp. (SMDC), registered a 3% increase in revenues to PHP24.5 billion in the first six months of 2021 from PHP23.7 billion in the first six months of 2020. The residential business’ operating income improved by 8% registering PHP10.4 billion in the first half of 2021 from PHP9.7 billion in the first half of 2020.
SMDC’s net reservation sales grew by 30% in the first half of the year recording PHP55.1 billion from PHP42.4 billion in the same period of the previous year. Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the national government.
Meanwhile, SM Prime’s Philippine malls business accounts for 26% of the consolidated revenues. It registered PHP4.8 billion in revenues in the second quarter of 2021, and this is 55% increase from PHP3.1 billion in the second quarter of 2020. The mall’s business reported PHP10.7 billion in revenues from January to June of 2021 as compared to PHP14.4 billion in the first six months of 2020. The reimplementation of Enhanced Community Quarantine (ECQ) in Metro Manila, Bulacan, Cavite, Laguna, and Rizal (NCR-plus Bubble) from March to May 2021 has caused lower mall activities in the mentioned areas.
The Company’s China malls recorded a 48% growth in revenues to PHP3.0 billion in 1H2021 from PHP2.0 billion in 1H2020. The 1H2020 performance was affected by the pandemic lockdown in China during the first quarter of 2020 and the reported positive growth in the succeeding periods was due to the overall recovery of the economy.
SM Prime’s other business segments, which include offices and hotels, and convention centers, contributed PHP3.1 billion to the Company’s consolidated revenues. SM Prime opened the south wing of Park Inn by Radisson Clark in the first half of 2021, which added 100 new rooms to the Company’s hotel portfolio.
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.
For further information, please contact:
Vice President, Investor Relations
SM Prime Holdings, Inc.
Tel. no.: +632 8862 7940