Property developer SM Prime Holdings Inc. said Monday first-half net income declined by 46 percent to P10.4 billion from P19.3 billion in the same period last year, as the company waived more than P10 billion worth of rents during the period.
SM Prime said in a disclosure to the stock exchange first-half revenues also went down by 23 percent to P43.7 billion from P57 billion in the first six months of 2019.
“The first half of 2020 has been one of the most challenging periods we’ve faced as a company. With the government maintaining the implementation of quarantine protocols in most key areas in the Philippines where our businesses are, SM Prime is committed to sustaining its operations while adhering to the strict safety measures implemented by the government and continue providing convenience to our customers,” SM Prime president Jeffrey Lim said.
Mall rents declined by 44 percent in the first semester to P13.1 billion from P23.3 billion in the same period last year on waived rents and rental discounts granted to tenants from March to June, which amounted to P11 billion.
To boost mall revenues, the company intensified its online strategy with the introduction of an e-commerce platform that allows tenants to complement physical stores inside SM malls with an online interface for customers and providing pick-up points within the mall for online sales of tenants.
The country’s largest mall operator and developer also offered cashless transactions through digital payment options, provided extended dining areas around the mall with regular sanitation and disinfection and partnered with local farmers and public transportation services such as tricycles to supply fresh produce and transport people and goods safely and conveniently.
SM Prime also launched drive-in cinema for a safer and exciting movie-watching experience.
SM Prime’s residential business rose by 11 percent to P23.7-billion revenue in the first half from P21.4 billion in the same period last year.
The group’s residential business accounts for 54 percent of total revenues. It also booked P42.2 billion in reservation sales in the first six months of 2020.
Meanwhile, construction works on SM Prime’s new and latest residential projects have resumed, pursuant to national government’s safety protocols.
SM Prime said it continued to innovate and strategize to recover from the unprecedented effects of the pandemic brought about by novel coronavirus 2019 including the continuous support in the operations of tenants and assistance to various stakeholders across the country.