(07 August 2023, Pasay City, Philippines)(SM Prime), one of the leading integrated property developers in Southeast Asia, reported a 49% increase in consolidated net income to PHP10.0 billion in the second quarter of 2023 from PHP6.7 billion in the second quarter of 2022. This is on the back of a 39% growth in consolidated revenues to PHP31.2 billion from PHP22.5 billion in the same period being reviewed. Consolidated operating income rose by 42% to PHP15.1 billion in 2Q2023 from PHP10.7 billion in 2Q2022.
SM Prime's consolidated net income reached PHP19.4 billion in the first half of 2023, 38% higher than PHP14.1 billion in 2022. This is supported by the 29% growth in consolidated revenues to PHP59.9 billion from PHP46.3 billion. Consolidated operating income grew by 36% to PHP29.0 billion in 1H 2023 from PHP21.4 billion in 1H 2022.
"The strong performance of SM Prime's main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry. We will continue to be strategic in expanding our footprints and operations across different localities where we can continue to be partners for growth and progress," said SM Prime President Jeffrey Lim.
SM Prime's Philippine mall business revenues posted a 30% growth in the second quarter of the year to PHP16.1 billion from PHP12.4 billion last year. Operating income rose by 27% quarter-on-quarter to PHP8.8 billion from PHP6.9 billion.
The Company's local mall business registered PHP31.5 billion in revenues in the first half of 2023, 53% higher than PHP20.6 billion in 2022. This accounts for 53% of the Company's consolidated revenues. Rent income grew by 42% year-on-year to PHP26.3 billion from PHP18.6 billion, as improvement in tenant sales and foot traffic continues. SM Prime's local cinema, ticket sales, and other revenues improved to PHP5.2 billion in the first half of the year, 156% higher than PHP2.0 billion in 2022. On the other hand, SM Prime's China mall business reported RMB398 million in revenues in the first six months of 2023, with a certain improvement from last year's RMB385 million.
SM Prime's primary residential business, led by SM Development Corp. (SMDC), reported PHP9.9 billion in revenues in the second quarter of 2023, 82% higher than PHP5.4 billion in the same quarter last year. Operating income jumped by 83% quarter-on-quarter to PHP4.2 billion from PHP2.3 billion. First half revenues amounted to PHP17.6 billion.
SMDC's reservation sales in the second half of 2023 reached PHP68.5 billion, 15% higher than last year's PHP59.4 billion. This translates to a 17% growth in unit sales in 1H 2023. The improving market condition provided local and overseas Filipino buyers capacity to invest in SM Prime's residential projects.
"We are optimistic about the company's full-year 2023 results given the improving market condition. SM Prime will also continue to look for new and sustainable ways of reaching our customers and provide them unparalleled experience and value in our developments," Mr. Lim added.
SM Prime's other business segments, which include offices, hotels, and convention centers, recorded a 40% growth in revenue to PHP6.2 billion in the first half of 2023 from PHP4.5 billion in 2022.
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.
For further information, please contact:
Vice President, Investor Relations
SM Prime Holdings, Inc.
Tel. no.: +632 8862 7940
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SM Prime Holdings Inc. published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by, unedited and unaltered, on 07 August 2023 07:12:07 UTC.