SM Prime Holdings, Inc., one of the leading integrated property developers in Southeast Asia, reported a P6.5 billion consolidated net income in the first quarter of 2021, on the back of consolidated revenues amounting to P20.8 billion.
In a disclosure to the Philippine Stock Exchange, the firm said it registered a strong quarter-on-quarter net income performance posting an almost 80 percent growth from P3.6 billion in the last quarter of 2020, while consolidated revenues remain almost the same from the previous quarter.
The reopening of many businesses and increased mobility of people given the localized community quarantine measures drove the slight recovery of the company from the impact of COVID-19.
“We welcomed 2021 with high hopes as most areas in the Philippines, including Metro Manila, were placed under GCQ in the first quarter of 2021,” SM Prime President Jeffrey C. Lim said.
He added that, “Along with the sustained growth of our residential business, our mall affiliates together with many of our SME-partners were able to reopen their shops, allowing our mall business segment to perform better.”
SM Prime’s residential business, led by SM Development Corp. (SMDC), reported a 5 percent revenue growth to P11.9 billion in the first three months of 2021 from P11.4 billion in the same period last year.
This accounts for 57 percent of the company’s consolidated revenues. The group’s operating income likewise improved by 9 percent to P5.1 billion in the first quarter of 2021 from P4.6 billion of the same period under review.
SMDC’s reservation sales surged by 31 percent in the first quarter this year to P32.4 billion from P24.8 billion in the same quarter of 2020. Newly launched residential projects accounted for almost 70
percent of the reported reservation sales.
SM Prime’s local mall business, which accounts for 28 percent of the consolidated revenues, reported P5.9 billion in the first three months of the year, 10 percent higher from the previous quarter’s P5.3 billion.
The growth is due to the increase of operating mall tenants, which drove mall rental income up by 14 percent to P5.6 billion in the first quarter of 2021 from P4.9 billion in last quarter of 2020.
Meanwhile, SM Prime’s China malls registered a 53 percent growth in revenues to RMB199 million in the first quarter of 2021 from RMB130 million in the same period last year.
The positive growth of the company’s international malls signals return to normal operations after the government-imposed lockdown last January 2020.
SM Prime’s other business segments, which include offices and hotels and convention centers contributed P1.6 billion to the Company’s consolidated revenues. This accounts for 7 percent of the Company’s consolidated revenues.
The Commercial Properties Group (CPG), which manages the Company’s office business, continues to operate at optimal level, while the company’s hotels and convention centers’ operations follow guidelines set by the COVID-19 Inter-Agency Task Force (IATF).