SM Prime earns P18 B in 2020 despite pandemic

Published February 15, 2021, 5:40 PM

by James A. Loyola

SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, reported a P18.0 billion consolidated net income for 2020 versus P38.1 billion in the previous year.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues last year amounted to P81.9 billion from P118.3 billion in 2019.

“SM Prime remains committed in its effort to support the national government and other organizations to contain and combat the spread of COVID-19 in the country,” said SM Prime President Jeffery C. Lim.

He added that, “As our core businesses slowly recover from the contraction brought about by community quarantines, our Company will continue providing avenues that will further enhance and facilitate these collective efforts with various organization, while sustaining our assistance to our employees, business partners and the communities we serve.”

In 2020, SM Prime’s Philippine mall business reported P23.6 billion revenues, as compared to P57.8 billion in 2019. Local malls’ rent income is P21.8 billion in 2020 and is 55 percent of the P48.4 billion in 2019.

The Company launched SM City Butuan and SM City Mindpro, both in Mindanao, in the last quarter of 2020 with safety protocols in place to provide basic needs and services to the communities in the region.

SM Prime’s residential business, led by SM Development Corporation (SMDC), posted a 6 percent revenue increase in 2020 to P46.5 billion from P43.7 billion in the previous year. Operating income, likewise, increased by 16 percent to P19.7 billion from P17.0 billion.

SMDC’s reservation sales registered a 10 percent growth, bringing the sales take-up to P99.0 billion in 2020 from P90.00 billion in the previous year.

The commercial properties business segment reported P4.8 billion revenues in 2020 from the previous year’s P4.6 billion. The business’ operating income reached P3.9 billion from the previous year’s P3.8 billion.

Meanwhile, the Company’s hotels and convention centers business segment recorded P1.6 billion revenues for the year 2020 as compared to P5.1 billion in 2019. The Company opened Olongapo City Convention Center in Zambales last year.

“We are optimistic, that together as one, we will all rise from this challenge and look forward to a better year. We encourage our fellow Filipino to keep supporting our local businesses while practicing safety protocols at all times,” Lim said.

SM Prime’s recent partnership with the Philippine Red Cross (PRC) to provide specimen sites for its saliva transcription-polymerase chain reaction (RT-PCR) testing, which are currently available at SM Mega Mall and SM Mall of Asia, aims to further boost the government’s campaign against the Coronavirus Disease (Covid-19).

Meanwhile, Mall of Asia Arena in Pasay City continues to be a Mega Swabbing Facility to cater to front-liners and travelers coming into Metro Manila.