SM Prime Holdings (SMPH) Q2 2024 earnings summary

Executive summary

• Consolidated net income rose 13% year-over-year to PHP22.07 billion in 1H2024, with consolidated revenues up 8% to PHP64.69 billion, driven by strong performance across all business segments.

• EBITDA grew 8% to PHP37.94 billion, maintaining a 59% margin.

• Malls contributed 58% of revenues, residences 31%, and other segments 11%.

• The company continues to expand integrated property developments and targets net zero by 2040.

Financial highlights

• Operating income increased 7% to PHP31.07 billion, and EBITDA grew 8% to PHP37.94 billion year-over-year.

• Rent revenues reached PHP37.83 billion, up 10% year-over-year, with malls contributing 85%.

• Real estate sales rose 6% to PHP19.59 billion, supported by strong reservation sales of PHP40.21 billion.

• Costs and expenses grew 9% to PHP33.62 billion, mainly from operating expenses and depreciation.

• Interest expense increased to PHP5.83 billion due to new bank loans for working capital and capex.

Outlook and guidance

• FY2024 CAPEX projected at PHP100 billion, funded by internal cash and borrowings.

• Over 230,000 sqm of new mall GFA to be added in 2024, with two more malls set to open after SM City Caloocan.

• Plans to launch 5,000–7,000 new residential units in 2024.

• Landbank of over 2,300 hectares supports growth for the next 5–7 years.

• Continued focus on mall expansions, coastal development, and commercial projects.