SM Prime logs 16% profit growth

MANILA, Philippines — SM Prime Holdings Inc., the integrated property company of the Sy family, said its recurring net income went up by 16 percent last year to P27.6 billion from P23.8 billion a year earlier as the mall business and sales of residential units remained strong.

SM Prime president Jeffrey Lim said the company continues to benefit from the country’s strong economic growth.

In a regulatory filing, SM Prime said consolidated revenues grew 14 percent to P90.9 billion last year from P79.8 billion in 2016, while overall operating income improved 15 percent to P40.6 billion in 2017 from P35.3 billion the previous year.

An increase in rental revenue from malls, which opened and expanded the past two years, and strong sales of residential units supported growth, the company said.

“SM Prime continues to benefit from the sustained overall economic progress of the Philippines that resulted in higher spending power for most Filipino families. This translated to consistent growth of our key businesses that include higher rental revenues of our malls, increased residential units sales and growing contribution of our other business segments,” Lim said.

Mall revenues, for instance, grew nine percent to P53.2 billion last year from P48.6 billion in 2016, while rent income improved 11 percent to P45.3 billion.