SM Prime income up 11 pct in Q1

Posted at 05/05/14 4:01 PM

MANILA, Philippines – Sy-led SM Prime Holdings Inc. posted an 11 percent jump in its consolidated net income in the first quarter of this year, the firm said Monday.

SM Prime said its consolidated net income increased to P4.58 billion for the first three months of 2014 from P4.11 billion in the same period last year.

Consolidated revenues, meanwhile, jumped by 3 percent to P15.35 billion in the January to March period from P4.95 billion, year-on-year.

The property giant said 56 percent of consolidated revenues came from rental revenues, which grew by 12 percent to P8.56 billion in 2014 from P7.63 billion in the same period in 2013.

Growth in rental revenue came from the opening of SM City Olongapo, SM City Consolacion, SM City San Fernando, SM City General Santos, SM Lanang Premier, SM Aura Premier and SM City BF Parañaque.

Cinema ticket sales increased by 40 percent to P1.06 billion in 2014 from P0.76 billion in 2013 on the back of new digital cinemas and 100 percent sales growth in local blockbuster movies.

Amusement and other revenues also increased by 30 percent to P710 million in 2014 from P546 million in 2013 due to the opening of new amusement rides in the Sky Ranch in Tagaytay last March 2013 and reopening of ice skating rink in SM Megamall last January 2014.

Real estate sales, however, recorded a 17 percent drop to P5.02 billion in 2014 from P6.01 billion in 2013.

The firm said the decrease was primarily due to sales take up attributable to only two project launches in 2012 of about 4,600 units from Breeze and Grace Residences.

In 2010 and 2011, nine projects were launched of about 26,700 units mainly from Jazz, Light, Wind, Shell and Green Residences.

Consolidated costs of real estate were P2.93 billion in 2014, down 20 percent from Php3.65 billion in 2013 due to lower recognized real estate costs in line with the lower real estate sales in 2014 compared to last year.

“We are off to a good start this year maintaining a steady growth for the first quarter of 2014. As we move towards our 5-year roadmap, we are very optimistic that SM Prime will achieve its targets,” said SM Prime president Hans Sy.

SM Prime will spend P70.57 billion in capital expenditures this year, more than half of which will be used to fund mall projects both in the Philippines and China.

The firm said it is planning to open more than 30 new malls in the Philippines and another 11 in China in the next five years.