SM Prime nets P18.4 B

MANILA, Philippines - Property giant SM Prime Holdings Inc. chalked up net profit of P18.4 billion in 2014, up 13 percent from the previous year on the back of strong growth of its retail operations owing to new mall openings and the expansion of existing ones.

In a disclosure to the Philippine Stock Exchange yesterday, SM Prime said consolidated revenues grew 11 percent to P66.2 billion with lease operations accounting for P36.5 billion or 55 percent of total.

Rental revenues from retail and commercial spaces represented a  13 percent increase from  the P32.2 billion recorded in 2013.

Same-store rental improved seven percent, sustaining the previous year’s growth pace.

“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. 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 FiveE-comCenter and the launch of five new housing projects. This is to complement the expansion of existing malls and on-going construction of high-rise residential development projects.” SM Prime president Hans T. Sy said.

Among the new malls that opened and underwent expansion were SM Aura Premier in Taguig, SM City BF Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong, SM City Cauayan in Isabela province and SM Center Angono in Rizal province, which provided additional  gross floor area of 564,000 square meters.

Growth was also partly attributed to TwoE- comCenter at the Mall of Asia complex which opened in 2012 and is now fully occupied.

Meanwhile, SM Prime’s housing group, which accounted for 33 percent of consolidated revenues, reported a seven percent rise in real estate sales to P22.2 billion, largely due to the increase in the pace of construction of sold units in Grace Residences in Taguig, Shell Residences in Pasay, Breeze Residences in Pasay, Green Residences in Manila, Grass Residences Phase 2 in Quezon City and Trees Residences in Quezon City.
Reservation sales jumped 36.5 percent to P35.9 billion, mostly coming from Shore Residences and Air Residences projects in Pasay and Makati, respectively.