Insider Spotlight
Total revenues rose 5 percent to P71.7 billion from P68 billion, while costs and expenses increased nearly 6 percent to P35.6 billion from P33.6 billion due to higher depreciation and amortization, fixed overhead and construction expenses, the company said in its disclosure on Monday.
By the numbers
Mall revenues climbed 8 percent to P41.8 billion from P38.6 billion on higher occupancy, stronger tenant sales and improved operational efficiency, helping cushion weakness in the residential business.
Residential revenues slipped 1 percent to P20.6 billion from P20.9 billion due to lower revenue recognition from prior-year sales.
Hotels and convention center revenues increased to P4.4 billion from P4.1 billion on higher bookings and average daily room rates, while office and warehouse earnings rose 9 percent to P5 billion from P4.6 billion on stronger space take-up.
What they’re saying
“Our focus on tenant relationships, customer experience and cost management supported our performance. Despite challenging market conditions, commercial demand remained resilient across our portfolio,” said Jeffrey C. Lim, SM Prime president.
Zoom in
Second-quarter consolidated net income edged 1 percent higher to nearly P12.9 billion from P12.8 billion as costs grew in line with revenues.
Revenues from April to June increased 9 percent to P38.4 billion from P35.3 billion, while costs and expenses rose nearly 9 percent to P19 billion from P17.5 billion, mainly due to higher construction costs.
The big picture
SM Prime had total assets of P1.1 trillion as of June. Capital expenditures declined 18 percent to P30.7 billion in the first half from P37.3 billion a year earlier. — Princess Daisy C. Ominga| Ed: Corrie S. Narisma
