SY-LED property developer SM Prime Holdings, Inc. reported a 14% increase in its consolidated net income for 2024, reaching a record-high P45.6 billion, up from P40 billion in 2023, driven by strong holiday spending, the opening of two latest malls, and better real estate sales.
“The double-digit improvement was driven by higher contributions from all business segments,” SM Prime said in a press release to the stock exchange on Monday.
Consolidated revenue also grew by 10%, reaching an all-time high of P140.4 billion in 2024, in comparison with P128.1 billion in 2023, as a result of increased rental income, real estate sales, and revenues from services and experiential offerings.
Broken down, the department stores business contributed 55% of the revenue, followed by the residences segment at 34%, the hotels and convention centers businesses at 6%, and the offices and warehouses businesses at 5%.
“The outcomes we achieved in 2024 provide a solid foundation for future growth. We now have several key projects in development that we expect will profit from this positive momentum,” SM Prime President Jeffrey C. Lim said.
For the fourth quarter, SM Prime’s net income grew by 19%, reaching P11.8 billion, up from P9.9 billion in 2023.
Consolidated revenue climbed 14% to P40.6 billion, in comparison with P35.5 billion a yr ago.
“Strong holiday spending, the opening of two latest malls, increased real estate sales, and blockbuster film releases led to the outstanding results,” SM Prime said.
SM Prime previously stated that it’s allocating as much as P33 billion this yr to expand its business real estate portfolio.
Of this, P21 billion will likely be earmarked for expanding the gross floor area of the corporate’s malls, while P6 billion will likely be allocated for expanding its hospitality and meetings, incentives, conferences, and exhibitions (MICE) operations.
One other P6 billion will likely be used for the event of recent office towers and workspaces.
On Monday, SM Prime shares fell by 5%, or P1.15, to P21.85 apiece. — Revin Mikhael D. Ochave
