SM Prime posts 10% net income growth to P37.2 billion in first 9 months

SM Prime Holdings reported a 10 percent increase in its net income for the first nine months of the year, reaching P37.2 billion, primarily driven by the robust performance of its mall and convention center businesses.

The company's third-quarter net profit saw an 8 percent rise to P12.8 billion, contributing to a 4 percent overall revenue increase to P103.4 billion for the nine-month period.

According to SM Prime President Jeffrey Lim, the strength of the malls is attributed to regional expansion, upgrades of flagship locations, and the introduction of new retail and dining experiences.

Malls remain the largest revenue contributor, making up 59 percent of consolidated revenues with a 7 percent increase to P61 billion due to more leasable space and new tenants.

The residential segment, encompassing housing and leisure developments, saw a slight decrease of 2 percent in revenue, totaling P32.6 billion, attributed to slower revenue recognition from mid-segment projects.

Hotels and convention centers experienced the highest growth rate at 9 percent, generating P6 billion from increased bookings for meetings, incentives, conferences, and exhibitions (MICE).

Office and warehouse revenues remained stable at P4 billion, representing approximately 4 percent of the company's total revenues.