Third-quarter is so far “turning out better than the first quarter and there’s a good chance it will even be better than our second quarter,” Tan said. SM Prime booked 13 billion pesos and 16.1 billion pesos in rental revenue from its malls in the country in the first quarter and second quarter, respectively.
“A lot of sales are driven by what students need,” Tan said in an interview on the sidelines of an event on Monday. “The third quarter so far is our biggest surprise because normally it’s a lean season,” he added. Schools reopened in the Southeast Asian nation last month. The positive revenue outlook at SM Prime unit SM Supermalls could help perk up sentiment toward the Philippine consumer sector after online broker COL Financial said companies mostly performed below expectations in the second quarter due to “normalizing” demand and higher operating costs.
SM Prime reported a 49% increase in second-quarter net income with mall revenue driven by sustained tenant sales and foot traffic. Despite elevated inflation, Tan said restaurants are still “‘doing well” while there is “some” pullback on high fashion and high-end products as many consumers are watchful of non-discretionary spending.