SM Prime Holdings Inc., the country’s largest integrated property company, said Monday core net income climbed 12 percent in the first quarter to P5.8 billion, driven by the strong performance of mall business and steady contributions from office and residential units.
SM Prime said in a disclosure to the stock exchange first-quarter consolidated revenues also grew 10 percent to P18.2 billion.
“SM Prime’s massive expansion last year propelled our performance this quarter. Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” SM Prime president Hans Sy said.
Revenues from mall operations jumped 11 percent in the January-March period to P11 billion from P9.9 billion a year ago, following the opening of new malls and expansion of existing malls.
The company said excluding the new malls and expansions, same-store growth averaged 7 percent.
SM Prime now has 57 malls in the Philippines, including the newly opened SM City San Jose del Monte in Bulacan, with a gross floor area of 101,000 square meters.
The company is set to open four more malls this year, including SM City Trece Martires, SM City East Ortigas, Cherry SM Congressional and Cherry SM Antipolo. It also plans to expand two existing malls.
The group’s residential unit posted revenues of P5.8 billion in the first three months of the year, up 5 percent year-on-year, on higher construction accomplishments of SM Development Corp. and an increase in reservation sales.
SM Prime launched two new projects and an expansion of existing development equivalent to 4,000 units in Las Pinas, Bicutan and along Roxas Boulevard in the first quarter.
SM Prime is also set to launch an additional 10,000 to 12,000 units located at the Mall of Asia Complex, Tagaytay, Quezon City, Bulacan, Cavite and Cabanatuan.
SM Prime’s commercial properties group registered a 16-percent increase in revenues to P1 billion following the opening of two new office towers with total GFA of 171,000 sqm.
These office buildings currently enjoy an average occupancy rate of 99 percent.
Revenues of the group’s hotels and convention centers business grew 22 percent in the first quarter to P617 million.
SM Prime said the growth was propelled by an improvement in the average room and occupancy rates which was supplemented by the opening of 154-room Park Inn Clark in Pampanga.
SM Prime is also set to open the 347-room Conrad Manila in the second half of 2016.