SM Prime pays P2.3B in cash dividends

SM Prime Holdings Inc., the country’s largest mall developer, will shell out cash dividends totalling P2.3 billion, equivalent to half of the prior year’s net profit.

This translates to a dividend rate of P0.233 per share. Shareholders on record as of May 25 are entitled to the dividend, which is payable on June 20.

"This cash dividend is declared in fulfillment of our improved dividend policy. With our expansion plans in the pipeline, we look forward to consistent growth in revenues and profits, and are prepared to extend reasonable dividends to our investors who invested in the company all these years," SM Prime president Hans Sy said.

SM Prime’s net income in 2004 was P4.62 billion, 11 percent higher than the previous year. Company officials expect to sustain the gains this year with the continued construction of new malls.

The company plans to open eight new shopping malls this year and in 2006, including its biggest mall to date, the SM Mall of Asia with a total floor area of 454,000 square meters located in the Manila Bay area.

The Mall of Asia, to be opened in December, is set to be the centerpiece of a 60-hectare central business park that the SM group plans to develop in the Manila Bay area.

This year, SM Prime plans to spend P5.5 billion to P6 billion to fund the construction of new malls and further beef up its landholdings from the current 187 hectares all over the country.

SM Prime ended 2004 with 19 shopping malls in operation. Aside from the SM Mall of Asia, other malls expected to open this year include SM Supercenter Molino, SM City San Lazaro, and Supercenter Valenzuela.