SM Prime Holdings Inc., the country’s largest property developer owned by tycoon Henry Sy, said Monday net income grew 13 percent in 2014 to P18.4 billion, on robust rental income and real estate sales.
SM Prime said in a disclosure to the stock exchange consolidated revenues rose 11 percent to P66.2 billion last year and were expected to keep growing this year.
“The encouraging financial performance in 2014 reiterates that the transformation of SM Prime into a property conglomerate is bearing fruits and trending above management expectations,” SM Prime president Hans Sy said.
“We expect this performance to be surpassed this year as the company pursues its 2015 expansion plans with the opening of four new malls, the completion of Five E-com Center and the launch of five new housing projects. This is to complement the expansion of existing malls and ongoing construction of high-rise residential development projects,” Sy said.
Rental revenues from retail and commercial spaces, which accounted for 55 percent of the group’s consolidated revenues, increased 13 percent to P36.5 billion in 2014 from P32.2 billion in 2013.
The company attributed the increase in rental revenue to the new malls and the expansion of existing malls in 2013 and 2014, including SM Aura Premier in Taguig, SM City BF Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong City, SM City Cauayan, Isabela and SM Center Angono in Rizal province, which had a combined gross floor area of 564,000 square meters.
SM Prime’s housing group, which accounted for 33 percent of consolidated revenues, posted a 7-percent growth in real estate sales to P22.2 billion in 2014, driven by the increase in the pace of construction of condominium projects.
Reservation sales accelerated to P35.9 billion in 2014 from only P26.3 billion in 2013.
SM Prime said for 2015, it planned to launch five new residential projects and two expansion projects with total sales value of P42 billion.
The mall’s cinemas generated ticket sales of P4.3 billion last year, an increase of 14 percent from the 2013 level, following the opening of digital cinemas at new malls and expanded malls.