050907: SMPH says net profit up at P1.5B

By Honey Madrilejos-Reyes

Reporter

MALL developer and operator SM Prime Holdings Inc. (SMPH) reported on Tuesday an 11-percent increase in net profit from January to March this year to P1.5 billion on the back of higher mall rentals boosted by its newly opened stores. Gross revenues, on the other hand, rose 24 percent to P3.6 billion while rental income from the malls, which accounted for 83 percent of total revenues, grew 26 percent to P3.0 billion. The company opened five malls last year led by the region’s third-largest shopping site The Mall of Asia, along with SM City Sta. Rosa, SM City Clark, SM Supercenter Pasig and SM City Lipa. SM North Edsa was also expanded with The Block. “Expect more to come from us as we carry out our goal of bringing more SM malls to provincial communities and expand some of our existing malls that have naturally grown and evolved with its markets,” said company president Hans Sy in a statement. Last month, the Sy-controlled SMPH said it was spending P35 billion in the next five years to fund the construction  of 35 new malls throughout the country and expansion of existing ones. This year alone, SMPH is spending P7 billion for the building of three new malls and expansion of four malls located in Cebu, Pampanga, Fairview and SM Mall of Asia. “The  five-year capex does not include yet the land acquisitions,” Sy emphasized. Jeffrey Lim, SMPH’s executive vice president, said the P35-billion capex would be equally financed by borrowings and internally generated cash. This year, SMPH would continue its expansion  programs geared toward areas outside of Metro Manila. “We are building three new malls in Bacolod, Taytay and Muntinlupa. We are also expanding four of our existing malls, including the SM Mall of Asia,” Sy said. Considered as the second-largest mall in the region, SM  Mall of Asia is being expanded to accommodate a Science Museum and Planetarium. The new additions, according to Sy, would seat on a 3,000 square meter lot and is up for completion by the end of the year. SMPH has set aside P250 million for the new features. Next year, the company is preparing another P7 billion to fund new malls to be constructed in Tarlac; Naga City , Bicol; Calamba, Laguna; Baliwag, Bulacan; and Marikina City . SMPH remains the major income contributor of SM Investments Corp., the holding company controlled by the country’s wealthiest man Henry Sy.

 

 

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