SM Prime’s Net Income for Full-Year 2019 Increases by 18%
(17 February 2020, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the largest integrated property developers in Southeast Asia, reported an 18% growth in its consolidated net income to PHP38.1 billion in 2019 from PHP32.2 billion in 2018.
Consolidated revenues increased by 14% to PHP118.3 billion from PHP104.1 billion, in 2019 and 2018 respectively, while consolidated operating income went up by 17% to PHP56.7 billion from PHP48.3 billion in the same period being reported.
“SM Prime’s continuous growth was brought about by our strategic expansion in the country’s developing cities.
We look forward to 2020 as we strengthen our presence in more key areas in the Philippines through sustainable integrated property developments that have great potential to further contribute to the growth of the overall economy,” SM Prime President Jeffrey Lim said.
Mall Operations
SM Prime’s Philippine mall business recorded an 8% increase in revenues to PHP57.8 billion in 2019 from PHP53.5 billion in 2018.
This was mainly driven by the 7% same-mall-sales growth across all mature malls.
The cinema and event ticket sales reported a 6% growth to PHP5.5 billion in 2019 from PHP5.2 billion in 2018, while revenues from amusement, merchandise sales, and others went up by 15% to PHP3.9 billion in 2019 from PHP3.4 billion in 2018.
Philippine mall operating income improved by 9% to PHP32.4 billion in the year reported from PHP29.8 billion of the previous year.
SM Prime has 74 malls in the Philippines offering 8.5 million square meters (sqm.) of gross floor area (GFA) and seven malls in China with 1.3 million sqm. of GFA as of year-end 2019. The Company is set to open three to five new malls in key provincial cities in 2020.
Residential Developments
SM Prime’s residential group, led by the Company’s primary residential business, SM Development Corporation (SMDC), recorded revenue growth of 24% to PHP45.2 billion in 2019 from PHP36.5 billion in 2018. Consolidated costs of real estate sales increased by 17% to PHP20.8 billion in 2019 from PHP17.8 billion in 2018.
The operating income went up by 39% to PHP17.1 billion from PHP12.3 billion of the same period being reviewed. The growth was due to higher construction accomplishments of projects such as Cheerful Residences, Green 2 Residences, Trees Residences, Hope Residences, Charm Residences, and Bloom Residences, as well as fast take-up of various Ready-For-Occupancy (RFO) projects, particularly those located within the Mall of Asia Complex, Pasay City and Makati City.
SMDC’s reservation sales grew by 24% to PHP90.0 billion in 2019 from PHP72.3 billion in 2018. In terms of unit sales, it increased by 11% to 23,424 from 21,157. The strong sales take-up came from projects namely Glam Residences, Sail Residences, Lane Residences, and Style Residences. SM Prime is scheduled to launch 15,000 to 20,000 residential units in 2020 that include high-rise buildings, mid-rise buildings, and single detached house and lot projects.
Other Business Segments
SM Prime’s other business segments registered a combined revenue growth of 14% to PHP9.6 billion in 2019 from PHP8.4 billion in 2018. Combined operating income increased by 23% to PHP4.9 billion from PHP4.0 billion.
The Commercial Properties and the Hotel and Convention Centers business segments’ growth is attributed to the full-year revenue contribution of ThreeE-Com Center, the opening of NU Mall of Asia (NUMA), as well as the opening of Park Inn by Radisson hotels in Iloilo and North EDSA, Quezon City. SM Prime has a total of 12 office buildings with a combined GFA of 695,000 sqm., eight hotels with over 1,900 rooms, four convention centers, and three trade halls as of year-end 2019.
This 2020, the Company is set to launch the first tower and podium of FourE-Com Center which will add more than 110,000 sqm. of GFA to its office portfolio, as well as open one Park Inn by Radisson in Bacolod and expand the existing Park Inn by Radisson in Clark. SMX Clark and Olongapo City Convention Center are also set to open in 2020 and these will add to the Company’s hotels and convention center’s 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 Alexander Pomento Vice President, Investor Relations SM Prime Holdings, Inc. E-mail: alex.pomento@smprime.comTel. no.: +632 8862 7940