SM Prime posts 9% income growth to P2.2B in 1st half

Sustaining its gains in the first quarter, mall developer SM Prime Holdings Inc. reported a nine percent growth in its net income for the first half this year to P2.2 billion, from only P2 billion a year ago, the company said yesterday.

Gross revenues rose 14 percent to P4.92 billion from only P4.3 billion a year ago. Of this amount, rental revenues accounted for P3.84 billion or an increase of 15 percent from the previous year’s level of P3.34 billion, largely due to the opening of new SM Supermalls.

In May, SM Prime opened a mall in Dasmarinas, Cavite which is almost 80 percent leased out.

For the second quarter alone, profits of SM Prime reached P1.07 billion, up by 11 percent from P963 million in the same period last year. Gross revenues likewise increased to P2.59 billion or 15 percent higher than the P2.26 billion registered the previous level.

SM Prime expects to perform better for the remainder of the year with the opening of SM City Batangas which lies on a 71,000-square meter property.

With the opening of these malls, SM Prime will own 19 operational shopping centers across Luzon, Visayas, and Mindanao with a gross floor area totaling 2.5 million square meters.

This year, SM Prime has earmarked P5 billion for the construction of new malls and acquisition of real estate properties for future expansion.

Under construction is the SM Mall of Asia, set to be the country’s premier shopping destination and tourist attraction, revitalizing the Roxas Boulevard Bay Area.

The first phase of the project involves the development of a main mall, an entertainment complex and two parking buildings with a gross floor area of 300,000 square meters. It is expected to open in the last quarter of 2005.

For 2005, two other malls are scheduled to open: SM City San Lazaro (Manila) and SM City Molino (Cavite). – Zinnia dela Peña