SM Prime income soars to ₱38.1-B in 2019

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The SM Group is looking to open at least three new malls this year after strong growth in mall operations in 2019.

Metro Manila (CNN Philippines, February 17) — SM Prime Holdings saw profits jump by nearly a fifth in 2019, boosted by strong mall revenues and condominium sales.

In a disclosure filed Monday, the Sy-led property developer reported a ₱38.1-billion net income last year, higher than ₱32.2 billion it made in 2018. Gross revenues reached ₱118.3 billion led by profits from mall operations.

SM Prime's mall business generated ₱57.8 billion, up by 8 percent year-on-year, the company said, drawn from same-mall sales growth, cinema and event tickets, as well as amusement and merchandise sales.

Last week, SM Prime secured approval for a ₱100-billion bond program for the next three years, with an initial offering meant to raise at least ₱15 billion to upgrade or build new malls.

The listed firm runs 74 malls in the country, with plans to open three to five new malls "in key provincial cities" this year. SM also runs seven malls in China.

SM Development Corporation (SMDC) also saw profits rise by a fourth, netting ₱45.2 billion in 2019.

Reservations jumped by 24 percent to ₱90 billion by yearend, with 23,424 units sold particularly in the Glam Residences, Sail Residences, Lane Residences and Style Residences projects. At least 15,000 residential units will be launched this year, SM Prime said.

Profit from hotels, convention centers, and office space under the conglomerate enjoyed a 14 percent lift to ₱9.6 billion in 209. The company said it plans to open SMX Clark and Olongapo City Convention Center this year.

Shares at SM Prime ended flat at ₱41.70 by the end of Monday's session.