SM Prime Holdings Inc., one of the leading integrated property developers in Southeast Asia, reported a 38 percent growth in consolidated net income to P30.1 billion last year from P21.8 billion in 2021.
In a disclosure to the Philippine Stock Exchange, the firm said the improvement is supported by the 29 percent hike in consolidated revenues to P105.8 billion in 2022 from P82.3 billion in 2021.
Consolidated operating income went up by 52 percent to P49.2 billion from P32.4 billion in the previous year.
“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for the most of the year, owing to the robust consumer spending particularly in the last quarter,” said SM Prime President Jeffrey Lim.
He added that, “We will continue to monitor this trend and watch out for impact of movements in the inflation and interest rates, including impact on our supply chain.”
Meanwhile, Lim said “we are poised to build on the growth momentum and proceed to expand our footprint in key areas in the country.”
SM Prime’s Philippine mall business, which accounts for 47 percent of its consolidated revenues, registered P49.8 billion in revenues in 2022, more than double the P24.1 billion in the previous year.
With the resumption of full rental fees in the second half of 2022, SM Prime’s local mall rental income went up by 92 percent to P44.1 billion from P23.0 billion in 2021.
On the back of the notable development in the entertainment industry, SM Prime’s cinema, event ticket sales, and other revenues amounted to P5.7 billion from just P1.1 billion in 2021.
In 2022, SM Prime expanded certain malls and opened four new malls in the Philippines namely SM City Roxas in Capiz, SM City Tanza in Cavite, SM City Sorsogon in Bicol, and SM City Tuguegarao in Cagayan.
As of December 2022, SM Prime has 82 malls in the Philippines, consisting of 58 malls in the provincial areas, and 24 malls in Metro Manila.
SM Prime’s residential business group, led by SM Development Corp. (SMDC), posted P40.1 billion in revenues in 2022, lower than the P45.9 billion registered in 2021.
SMDC’s reservation sales reached P102.0 billion in 2022, slightly higher than P98.9 billion in 2021. This translates to an 18 percent increase in unit sales of more than 21,000 in 2022 from almost 18,000 in the previous year.
SMDC launched three new residential developments in different provincial cities of the Philippines in 2022. These include Vail Residences in Cagayan de Oro, Now Residences in Pampanga, and Zeal Residences in General Trias, Cavite.
SM Prime’s office and hotel and convention center businesses, which account for 10 percent of the Company’s consolidated revenues, recorded 59 percent growth in revenues to P10.5 billion in 2022 from P6.6 billion in 2021.
The Company’s office business segment registered P6.1 billion in revenues in 2022, 22 percent higher than P5.0 billion in 2021. Meanwhile, SM Prime’s hotel and convention center business segment reported P4.3 billion in revenues in 2022, almost triple the P1.6 billion revenue in 2021.
SM Prime launched FourE-Com Center in 2022, which is located at the Mall of Asia Complex in Pasay City, as well as the SMX Clark Convention Center in Pampanga, which is nestled alongside SM City Clark and Park Inn Radisson Clark.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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