SM Prime: net income increases by 21% in 1H2022

(01 Aug 2022, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of Southeast Asia’s leading integrated real estate developers, announced a 21% increase in the company’s consolidated net profit to PHP 14.1 billion in the first half of 2022 compared to PHP 11.6 billion in the first half of 2021. This is supported by a 13% increase in consolidated revenues to PHP 46.3 billion compared to PHP 41.1 billion during the same period examined. Consolidated operating income grew by 33% to PHP21.4 billion in 2022 from PHP16.1 billion in 2021.

“Growth in domestic demand over the past period has kept SM Prime’s financial growth stable, as reflected in our first half 2022 results. We are optimistic that despite the global economic downturn, the local economy will continue to benefit continued growth in remittances from overseas Filipino workers (OFW), the business process outsourcing (BPO) industry, as well as increased travel and local tour activity” , said SM Prime President Jeffrey Lim.

SM Prime’s Philippine mall revenue, which accounts for 44% of the company’s consolidated revenue, jumped 92% to PHP20.6 billion in the first six months of 2022 from PHP10.7 billion. in the first six months of 2021. The increase is due to the 80% growth in shopping center rental income to PHP 18.6 billion in 2022 from PHP 10.3 billion in 2021. Given the quarantine more relaxed community in major key areas of the Philippines during the reporting period, SM Prime cinemas, event ticket sales and other revenue increased from PHP 0.5 billion to PHP 2.0 billion. SM Prime’s mall sales in China reached RMB 0.39 billion in the first half of 2022, almost the same level as in 2021.

SM Prime’s residential business group, led by SM Development Corp. (SMDC), recorded revenue of PHP 18.2 billion in the first half of 2022, down 25% from PHP 24.5 billion in the first half of 2021. The decline in revenue was partly due sales canceled following the expiration of Bayanihan Act, which granted a reprieve to unit buyers at the height of the pandemic, affecting the entire industry. The economic uncertainty caused by the pandemic also contributed to the drop in income.

SMDC reservation sales increased 49% in unit sales to 12,327 this year from 8,269 last year. This translates to an 8% increase in booking sales to PHP59.4 billion from January to June 2022, compared to PHP55.1 billion in the same period last year.

SM Prime’s other key businesses, which include offices, hotels and convention centers, saw revenue growth of 49% to PHP 4.5 billion in the first half of 2022 from PHP 3.0 billion. PHP in the first half of 2021. The company’s office business segment recorded revenue of PHP 2.8 billion, up 14% from the same period last year, while segment revenue hotel and convention center business was PHP 1.7 billion, up 205% from the first half of last year.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable cities, thereby enriching the quality of life for millions of people.


For more information, please contact:

Alexander Pomento

Vice President, Investor Relations

SM Prime Holdings, Inc.

Email: [email protected]

Such. : +632 8862 7940

Forward-looking statement

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