Lower mall income, rental earnings pull down SM Prime end-September net income by 48%

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Metro Manila (CNN Philippines, October 26) — SM Prime's net income from January to September dropped by nearly 50 percent from last year, as the coronavirus pandemic forced quarantine restrictions across the country, effectively reducing foot traffic in malls. .

In a disclosure to the local stock exchange, the integrated property developer said it earned ₱14.4 billion during the period, down 48 percent from the ₱27.6 billion recorded in 2019.

Out of SM Prime's business ventures, malls took the worst blow from the pandemic. The mall business posted ₱18.3 billion as of September, 57 percent lower from the ₱42 billion it clocked in during 2019. Income from rentals, meanwhile, plunged by 52 percent to ₱16.8 billion during the period from last year's ₱35.1 billion.

Meanwhile, residential arm SM Development Corp. saw a slight jump in revenue from January to September with earnings of ₱34.2 billion, 7 percent up from ₱31.9 billion in 2019.

With the easing of quarantine restrictions, the conglomerate is seeing the light at the end of the tunnel.

“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year," SM Prime president Jeffery Lim said.

Malls have already been allowed to operate at full capacity beginning Oct. 3 in areas under general community quarantine, which include Metro Manila, the country's economic hub.