SM Prime expects to exceed '06 income target of P5.4B

By Zinnia B. Dela Peña
The Philippine Star 06/09/2006

Banking on the public’s warm acceptance of its new malls, SM Prime Holdings Inc. expects to exceed its yearend income target of P5.4 billion, the company’s top official said.

SM Prime president Hans Sy said the company has already reported a 10 percent growth in its net profit in the second quarter alone.

He said the company is confident of surpassing its income target for the year as it expects to open two more malls to bring to 28 its total network by the end of 2006.

Following the opening of Mall of Asia last month, SM Prime is also expected to open SM Supercenter Frontera Verde in Pasig and SM City Lipa.

The opening of these new malls will increase the company’s total gross floor area to 3.5 million square meters by the end of the year.

SM Prime is also expanding SM North Edsa with the construction of Annex 3.

In the first quarter this year, SM Prime reported an eight percent increase in net income to P1.34 billion from P1.24 billion a year earlier, mainly due to higher rental revenues with the opening of new malls.

Gross revenues likewise grew 15 percent to P2.85 billion from P2.49 billion a year earlier. Bulk came from lease operations, accounting for P2.35 billion or an increase of 15 percent from last year’s P2.04 billion.

The increase was attributed to the opening of SM City San Lazaro, SM Supercenter Valenzuela, SM Supercenter Molino and SM City Sta. Rosa. These new malls currently have an average occupancy level of 95 percent.

Last year, SM Prime reported a net income of P4.62 billion on revenues of P10.21 billion.

SM Prime is a member of the SM Group of tycoon Henry Sy, a conglomerate with interests in the property development, retail, sale, wholesale and merchandising, banking and financial services, leisure and tourism and real estate sectors.

 

http://www.philstar.com/philstar/NEWS200606090707.htm