SM Prime Holdings Inc., one of the leading integrated property developers in Southeast Asia, reported a 48 percent drop in consolidated net income to P14.4 billion in the first nine months of 2020 from P27.6 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenue reached P60.7 billion, 29 percent lower from P85.0 billion in the first nine months of 2019.

“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year,” said SM Prime President Jeffery C. Lim.

He added that, “We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter.”

“Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy,” Lim noted.

In the first nine months of 2020, SM Prime’s Philippine mall business registered revenues of P18.3 billion, 57 percent lower from last year’s P42.0 billion. Local malls’ rental income reached P16.8 billion, 52 percent lower from P35.1 billion in the same period last year. 

SM Prime’s residential business, led by SM Development Corp. (SMDC), recorded a 7 percent increase in revenue in the first nine months of 2020 to P34.2 billion from P31.9 billion in the same period last year.

Operating income, likewise, increased by 13 percent to P14.1 billion from P12.5 billion.

SMDC’s reservation sales improved to P66.7 billion in the first three quarters of 2020 from last year’s P66.4 billion.

With the resumption of construction in new and expanding SMDC projects, the company is expecting to add more units in its inventory while continuously offering its ready-for-occupancy (RFO) units of 1,650 units, down from 2,292 units in the same period being reviewed.

SM Prime’s commercial properties business reported P3.7-billion revenue in the first three quarters of the year, while the group’s operating income reached PHP3.3 billion.

Meanwhile, the Company’s hotels and convention centers business segment registered P1.3 billion revenue for the first nine months of 2020 as it started to cater to wider market with the easing of quarantine measures in key areas in the Philippines. 

“As we work together to bounce back from these challenges, SM Prime will stay committed to finding solutions to serve the ever-changing needs and aspirations of its customers, while providing growth to all our stakeholders and maintaining a safe and healthy environment for everyone,” Lim said.