SM Prime Holdings Inc., one of the leading integrated property developers in Southeast Asia, reported a 12 percent growth in consolidated net income to P11.6 billion in the first half of 2021 from P10.4 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said the hike came on the back of a 148 percent jump in second quarter net income to P5.2 billion from P2.1 billion in the same period last year.
First half consolidated revenues recorded at P41.1 billion, down 6 percent from P43.7 of 2020’s first half.
SM Prime said “The improvement is due to the continued positive performance of the Company’s residential business in the first half of 2021, as well as the Company’s malls business in the second quarter of the year.” This is in spite of the effect of the reimplementation of stricter community quarantine from March to May 2021 in key areas such as Metro Manila and nearby provinces.
“In these challenging times, we are committed more in providing a safe environment to all our stakeholders by strict observance of health and safety protocols across all our developments,” SM Prime President Jeffrey C. Lim said.
He added that, “Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide as well as providing free inoculation to thousands of our employees.”
SM Prime’s residential business, which accounted for 60 percent of SM Prime’s consolidated revenues and led by SM Development Corporation (SMDC), registered a 3 percent increase in revenues to P24.5 billion in the first six months of 2021 from P23.7 billion in the same period last year.
The residential business’ operating income improved by 8 percent, registering at P10.4 billion in the first half of 2021 from P9.7 billion in the same period last year.
SMDC’s net reservation sales grew by 30 percent in the first half of the year recording P55.1 billion from P42.4 billion in the same period of the previous year.
Construction works on SM Prime’s new and latest residential projects remain ongoing while following safety protocols implemented by the national government.
Meanwhile, SM Prime’s Philippine malls business accounted for 26 percent of the consolidated revenues. It registered P4.8 billion revenues in the second quarter of 2021, and this is 55 percent increase from the P3.1 billion in the second quarter of 2020.
The malls business reported P10.7 billion revenues from January to June of 2021 as compared to P14.4 billion in the first six months of 2020.
The reimplementation of Enhanced Community Quarantine (ECQ) in the Metro Manila, Bulacan, Cavite, Laguna, and Rizal (NCR-plus Bubble) from March to May 2021 has caused lower mall activities in the mentioned areas.
The Company’s China malls recorded a 48 percent growth in revenues to P3.0 billion in the first half of the year from P2.0 billion in the same period of 2020.
Last year’s performance was affected by the pandemic lockdown in China during the first quarter of 2020 and the reported positive growth in the succeeding periods was due to the overall recovery of the economy.
SM Prime’s other business segments, which include offices and hotels, and convention centers, contributed P3.1 billion to the Company’s consolidated revenues.