Prime Holdings, Inc. (SM Prime), one of the leading property developers in Southeast Asia, reported a combined attributable net earnings of P16.27 billion in 2013 — slightly higher than the P16.2 billion net income earned in 2012.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues rose 5 percent to P59.79 billion from P57.22 billion a year ago.
“Our consolidated financial results in 2013 were within our expectations. We expect the Philippine economy to sustain its growth momentum in 2014 and create more demand for our property offerings,” said SM Prime President Hans T. Sy.
He added that “we will continue to pursue our expansion plans and look for new growth opportunities. We sincerely thank our stakeholders for believing in our vision of becoming a world-class Filipino brand.”
SM Prime’s consolidated net income in 2013 would have increased by 8 percent to P17.55 billion were it not for the one-time restructuring cost of P1.28 billion incurred due to the consolidation of the SM group’s property businesses into SM Prime.
This was the first time the holding firm reported the consolidated financial performance of its mall, residential, office and tourism development businesses.
Rental revenues accounted for 54 percent of total revenues, and grew by 11 percent to P32.20 billion from P28.95 billion in 2012.
The increase was primarily due to the full-year effect of new malls opened in 2012, namely SM City Olongapo, SM City Consolacion, SM City San Fernando, SM City General Santos, SM Lanang Premier, and the opening in 2013 of SM Aura Premier.
Excluding the new malls and expansions, rental revenues grew 7 percent. SM Prime’s shopping malls in China also sustained their profit growth, with net income amounting to P958 million.
Cinema ticket sales increased by 8 percent to P3.74 billion from P3.48 billion in 2012, as SM Prime opened additional digital cinemas at the new malls. This allowed simultaneous nationwide releases and more blockbuster movies screened, both local and international.
Amusement and other revenues likewise increased by 40 percent to P3.08 billion from P2.21 billion in 2012 due to opening of new amusement rides in SM by the Bay and the SkyRanch in Tagaytay, as well as the increase in advertising income and sponsorship revenues.
The full-year recognition of revenues from Two-Ecom, which began operations in mid-2012 and is now 98 percent-occupied, also helped push up rental revenues from commercial operations by 14 percent to P2.93 billion.
Real estate sales for 2013 stood at P20.78 billion. Three projects were launched in 2013, namely: Grass Phase 2, Shore and Trees. These projects are expected to contribute significantly to revenues starting in 2014. (Manila Bulletin)