SM Prime profit up 14% to P45.6B in 2024, driven by new malls, strong holiday sales

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 new malls, and higher real estate sales.

“The double-digit improvement was driven by higher contributions from all business segments,” SM Prime said in a statement to the stock exchange on Monday.

Consolidated revenue also grew by 10%, reaching an all-time high of P140.4 billion in 2024, compared to P128.1 billion in 2023, due to increased rental income, real estate sales, and revenues from services and experiential offerings.

Broken down, the malls 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 results we achieved in 2024 provide a solid foundation for future growth. We have several key projects in development that we expect will benefit 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, compared to P35.5 billion a year ago.

“Strong holiday spending, the opening of two new malls, increased real estate sales, and blockbuster film releases led to the outstanding results,” SM Prime said.

SM Prime previously stated that it is allocating up to P33 billion this year to expand its commercial real estate portfolio.

Of this, P21 billion will be earmarked for expanding the gross floor area of the company’s malls, while P6 billion will be allocated for expanding its hospitality and meetings, incentives, conferences, and exhibitions (MICE) operations.

Another P6 billion will be used for the development of new office towers and workspaces.

On Monday, SM Prime shares fell by 5%, or P1.15, to P21.85 apiece. — Revin Mikhael D. Ochave