050907: SM Prime profit jumps 11% to P1.5B in Q1

By Zinnia B. Dela Peña
The Philippine Star 05/09/2007

Shopping mall giant SM Prime Holdings Inc. posted a net profit of P1.5 billion in the first quarter this year, up 11 percent from a year ago on higher income from lease operations.

In a statement, SM Prime said gross revenues grew 24 percent to P3.6 billion due to the opening of five malls in 2006, including the SM Mall of Asia, the largest shopping mall in the country to date.

Rental income rose 26 percent to P3 billion, accounting for 83 percent of total revenues. SM’s malls, on the average, enjoyed an occupancy rate of 97 percent.

EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to P2.5 billion or an increase of 19 percent from the year earlier, translating to an EBITDA margin of 71 percent.

The malls that opened last year were 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 SM Prime president Hans Sy.

Other malls slated for opening this year are SM City Taytay and SM Supercenter Muntinlupa.

SM Prime said it is also expanding the Mall of Asia and SM City Pampanga.

The company is setting aside P35 billion over the next five years for the construction of 35 to 40 new malls as well as the expansion of existing malls nationwide. Funding for the project will come from internally generated funds as well as some borrowings.

For this year alone, SM Prime is spending P7 billion for the development of malls in Taytay, Rizal and Muntinlupa. It is budgeting P1.8 billion to add leasable areas in the Mall of Asia as well as the construction of a planetarium adjacent to the mall.

Malls to be developed in 2008 include Tarlac, Naga, Calamba, Baliuag, and Marikina.

The programmed capital budget does not include SM Prime’s landbanking activities and planned acquisition of malls developed by other entities.

SM Prime is doubling its authorized capital stock to P20 billion from the existing P10 billion to prepare for more investments or capital raising opportunities.

 

http://www.philstar.com/philstar/NEWS200705090705.htm