SM Prime : 1Q2023 Net Income Increases by 27% to PHP9.4 Billion

(08 May 2022, Pasay City, Philippines)SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, registered a consolidated net income of PHP9.4 billion in January to March of 2023, 27% higher than the PHP7.4 billion in the same period last year. This is on the back of a 20% growth in consolidated revenues to

PHP28.7 billion from PHP23.9 billion. Consolidated operating income rose to PHP13.9 billion, 30% higher than last year's PHP10.7 billion.

"We are pleased to report a strong first quarter consolidated financial performance on SM Prime's business. This is a testament to the resilience of our businesses, and the hard work and dedication of our employees. Particularly, our recurring businesses have remarkably bounced back after being hit by the mobility restrictions and economic disruptions," SM Prime President Jeffrey Lim said.

SM Prime's Philippine mall business, which accounts for 54% of the Company's consolidated revenues, recorded an 88% increase in revenues to PHP15.4 billion in the first quarter of 2023 from PHP8.2 billion in the first quarter of 2022. SM Prime's local malls' rental income increased by 72% to PHP13.0 billion from PHP7.6 billion in the same period last year. The growth is due to increase in tenant sales and foot traffic, as well as full charging of rental fees that the Company has implemented since the second half of 2022. The Company's local cinema, ticket sales, and other revenues rose by 288% to PHP2.5 billion from PHP0.6 billion. Meanwhile, SM Prime's China mall business registered RMB0.2 billion in revenues in the first three months of 2023, almost the same level as last year.

SM Prime's residential business group, led by SM Development Corp. (SMDC), posted

PHP8.5 billion in revenues, 29% lower than last year's PHP12.0 billion. The reported decrease in revenue is still partly due to canceled sales as an effect of high inflation, rising domestic interest rates, and the lapse of Bayanihan Law. However, cancellations are beginning to moderate in the first quarter of 2023.

SMDC's sales take-up in the first three months of 2023 reached PHP35.8 billion, 15% higher than last year's PHP31.1 billion. This translates to a 23% increase in unit sales to 7,523 in the first quarter of 2023 from 6,110 in the first quarter of 2022.

SM Prime's other key businesses, which include offices, hotels, and convention centers, reached PHP3.2 billion in the first quarter of 2023, 59% higher from PHP2.0 billion in the first quarter of 2022. SM Prime's office business segment registered PHP1.7 billion revenues in January to March of 2023, 25% higher than PHP1.4 billion in the same period being reviewed. The Company's hotels and convention centers business segment recorded PHP1.5 billion in revenues, 129% higher than last year's PHP0.7 billion.

"We remain optimistic about the long-term prospects of the Philippines economy and the property industry. We will continue to leverage our strengths and capabilities to create value for all our stakeholders," Mr. Lim added.

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

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For further information, please contact:

Alexander Pomento

Vice President, Investor Relations

SM Prime Holdings, Inc.

E-mail: [e-mail]

Tel. no.: [phone]

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