“We’ve been monitoring November; it’s never been this good,” said Steven Tan, SM Supermalls president, who oversees 87 shopping centers across the country.
“Maybe it’s because of Wicked, Moana, or Hello, Love, Again. Our malls are full of people,” he added in a chance interview with reporters.
“The upcoming MMFF [Metro Manila Film Festival] is an added bonus for us,” he said.
Big picture
Shopping malls are a key driver of listed parent firm SM Prime Holdings’ (SMPH) sustained profitability, which grew 12 percent to P33.9 billion during the first nine months of the year.
SM Prime’s mall segment, making up 57 percent of overall revenues, reported P56.5 billion in revenues for the first nine months, an 8 percent rise.
Mall rental income also increased by 8 percent to P48.5 billion, with cinemas, event ticket sales, and other revenues climbing 4 percent to P8 billion.
Analyst view
Despite the glut in the residential condominium sector, SM Prime malls remain a core pillar of the business, showing healthy signs of growth, according to AP Securities Inc., which has issued a “buy” rating and set a P40.30 per share price target for the developer.
“SMPH’s position as the top mall operator in the country ensures that the occupancy rate of its malls always remains high, with the current occupancy back to the pre-pandemic level of 95 percent,” according to Joey Cipres, research analyst at AP Securities.
“That is why SMPH is shifting its focus from building more residential units to boosting its mall portfolio to 100 by the end of 2027. As such, we see SMPH more as a consumer play rather than a property company,” he added.
2025 outlook?
Tan sees growth continuing into next year as they continue to open new malls.
He also cited the upcoming mid-term elections in 2025, which are expected to bolster consumption and the broader economy.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
