SM Prime Q3 profit hits P11.8B, expects Q4 boost from new mall

SY-LED SM Prime Holdings, Inc. reported an 11% rise in its third-quarter (Q3) net income to P11.8 billion, with its president expecting further growth in the fourth quarter (Q4), boosted by a new mall in Cebu and the holiday season.

Third-quarter consolidated revenue rose by 7% to P35.1 billion from P32.7 billion in 2023, SM Prime said in a statement to the stock exchange on Monday.

Operating income improved by 6.4% to P16.6 billion from P15.6 billion last year.

For the first nine months, SM Prime grew its consolidated net income by 12% to P33.9 billion from P30.1 billion last year.

SM Prime President Jeffrey C. Lim said the company is on track to have another “banner year” as indicated by its financial results as of the end of September.

“For the remainder of the year, we anticipate continued growth due to the recent opening of SM City J Mall and the upcoming holiday season,” Mr. Lim said.

SM Prime generated P40 billion in net income last year, marking the company’s highest annual figure in its history.

Nine-month revenue increased by 8% to P99.8 billion from P92.6 billion a year ago.

Operating income also rose by 7% to P47.7 billion versus P44.5 billion the prior year.

Among segments, the mall business grew its revenue by 8% to P56.5 billion. It accounted for 57% of total revenue.

Mall rental income increased by 8% to P48.5 billion, while cinemas, event ticket sales, and other revenues rose by 4% to P8 billion.

Revenue of the primary residential business saw a 9% jump to P31.2 billion. SM Development Corp. posted P47 billion in reservation sales, down by 47% from P89.3 billion a year ago.

SM Prime’s offices, hotels, and convention centers segment recorded an 11% increase in revenue to P11 billion from P9.9 billion last year.

On Monday, SM Prime shares fell by 2.45% or 70 centavos to P27.90 per share. — Revin Mikhael D. Ochave