MANILA, Philippines — SM Prime Holdings Inc. posted a double-digit profits growth last year, with its residential, office and hotel businesses doing much of the heavy lifting as prolonged pandemic restrictions continued to weigh on the company’s local shopping malls.
In disclosure to the stock exchange on Monday, the Sy-led landlord reported a consolidated net income of P21.8 billion in 2021, up 21% year-on-year.
SM Prime is yet to release its full financial report, but it attributed the bottom-line growth last year to consolidated revenues amounting to P82.3 billion, unchanged from 2020 level. Meanwhile, operating income went up 11% on-year to P32.4 billion in 2021.
Broken down, revenues from SM Prime’s residential business unit led by SM Development Corp. (SMDC) reached P45.9 billion last year, with sales take-up hitting P98.9 billion. The company did not provide a year-on-year comparison for this segment.
SM Prime’s other businesses — which include offices, hotels, and convention centers — reported a consolidated topline of P6.6 billion in 2021, 4% higher compared with a year ago. SM Prime’s commercial properties saw revenues grow 5% year-on-year to P5.0 billion in 2021, while the company’s hotels and convention centers generated P1.6 billion revenues last year.
Meanwhile, SM Prime’s mall business was still reeling from prolonged pandemic restrictions, which had been easing. Revenues from the company’s local mall segment amounted to P24.1 billion in 2021, up by only 2.1% year-on-year.
In China, where there is a “quick return to normalcy” amid the pandemic, SM Prime’s mall business there saw its net income jump 154% on-year to RMB 2 million in 2021, with revenues clocking in a bigger annual growth of 20%.
“As we begin to see the result of joint effort by the government and private organizations to manage the pandemic, SM Prime is set to pursue business expansions with broader funding options available locally and internationally,” Jeffrey Lim, company president, said in a statement.
On Monday, shares in SM Prim gained P4.45% to close at P39.90 each.