SM Prime Holdings Inc., the property arm of the Sy family, has reported a 38% surge in profits for the first half of 2023, reaching P19.4 billion. The company remains optimistic about its full-year results, citing improving market conditions. SM Prime plans to continue finding innovative ways to engage customers and provide them with exceptional experiences and value in its developments. Total revenues also grew by 29% to nearly P60 billion during the same period.
The growth in profits can be attributed to the success of SM Prime’s shopping malls segment, which accounted for more than half of the company’s revenues. The Philippine shopping malls recorded revenues of P31.5 billion, a 53% increase. Rental incomes also grew by 42% due to higher tenant sales and foot traffic. The company’s cinemas, ticket sales, and other revenues reached P5.2 billion, a significant increase of 156% compared to the previous year. SM Prime’s malls in China also saw higher revenues.
SM Prime’s president, Jeffrey Lim, highlighted the strong performance of its main business units, particularly the malls and primary residences. He emphasized the company’s commitment to driving growth in the local property industry and its strategic expansion across different locations.
Although residential sales slightly decreased to P17.6 billion compared to the same period last year, reservation sales, which serve as an indicator of future revenues, increased by 17%. SM Prime attributed this growth to the improving market conditions, which enabled local and overseas Filipino buyers to invest in its residential projects.
Furthermore, SM Prime’s other business segments, including offices, hotels, and convention centers, reported a 40% revenue growth to P6.2 billion in the first half of the year.
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