SM Prime profit rises 38% as full rental fees resume

By Adrian H. Halili | BusinessWorld
February 21, 2023


SM PRIME HOLDINGS, INC reported a 38.1% growth in its consolidated net income to P30.1 billion last year from P21.8 billion a year earlier as it resumed collecting full rental fees in malls.

“We are pleased to report that we ended 2022 on a positive note despite the challenges faced for the most of the year, owing to the robust consumer spending particularly in the last quarter,” said SM Prime President Jeffrey C. Lim in a press release.

Meanwhile, the listed holding firm’s consolidated revenues increased by 28.6% to P105.8 billion last year from the P82.3 billion recorded in 2021. The increase largely came from its mall business, which posted P49.8 billion in revenues or more than double the P24.1 billion recorded in the previous year and made up 47% of SM Prime’s topline.

Full rental fees resumed in the second half of last year, resulting in a 91.7% rise in local mall rental income to P44.1 billion from P23 billion. Other revenues, including those coming from cinema and event ticket sales, increased more than five times to P5.7 billion from P1.1 billion.

“As of December 2022, SM Prime has 82 malls in the Philippines, consisting of 58 malls in the provincial areas, and 24 malls in Metro Manila,” the company said.

SM Prime’s consolidated operating income rose by 51.9% to P49.2 billion from P32.4 billion in the previous year.

The company’s residential arm led by SM Development Corp. posted a 12.6% revenue decline to P40.1 billion from P45.9 billion previously.

Other business segments, including offices, hotels, and convention centers, reported a 59.1% increase in revenues to P10.5 billion from P6.6 billion in 2021.

On Monday, shares in SM Prime declined by 0.27% or P0.10 to close at P36.90 each. — Adrian H. Halili