SM Prime Holdings Inc., one of the largest integrated property developers in Southeast Asia, said Monday net income climbed 16 percent in the first half to P16.6 billion from P14.39 billion in the same period last year on double-digit growth in mall revenues and residential sales.
SM Prime said in a disclosure to the stock exchange consolidated revenues increased 15 percent in the six-month period to P49.77 billion from P43.25 billion a year ago.
Operating income also increased 16 percent to P23.36 billion from P20.11 billion.
“SM Prime’s expansion projects in various progressive provincial areas in the Philippines, as well as a bolstered presence in Metro Manila, allowed the company to maintain double-digit growth in all of our businesses,” SM Prime president Jeffrey Lim said.
“We intend to deliver more integrated developments in the coming years anchored by lifestyle malls, luxurious yet affordable residences and other complimentary amenities across the country. We believe that synergy among our businesses is key to sustaining our revenue and income growths, while also improving the lives of the communities we serve,” Lim said.
Mall revenues, which accounted for 58 percent of total revenues, rose 12 percent in the first half to P28.71 billion from P25.68 billion a year earlier.
SM Prime had 77 malls, including 70 in the Philippines and seven in China, as of end-June.
The company opened SM Center Imus in Cavite, SM City Urdaneta Central in Pangasinan and SM City Telabastagan in Pampanga in the first half.
Two more malls will open this year, including SM City Legazpi in Albay and SM Center Ormoc in Leyte.
SM Prime’s residential revenues climbed 23 percent to P17.05 billion in the first half from P13.91 billion in the same period last year.
High-rise housing projects in Metro Manila that were launched in 2015 to 2017 continued to drive the revenue growth of the segment.
SM Development Corp., the residential unit of SM Prime, recorded a 25-percent increase in reservation sales to P34.45 billion from P27.55 billion reported in the first semester of 2017.
This translated into a 7-percent increase in sales to 9,319 units from 8,699 units.