Higher mall revenues boost SM Prime net income 8% to P4.97B

SM Prime Holdings Inc., the country’s leading shopping mall developer, posted a P4.97- billion net profit last year, up eight percent from 2004’s P4.62 billion, mainly on higher rental revenues.

Gross revenues increased seven percent to P10.9 billion from P10.21 billion in 2004. Lease revenues accounted for bulk of total with a 10- percent growth to P9.03 billion from P8.18 billion, primarily due to rentals from SM City Dasmariñas, SM City Batangas, SM City San Lazaro, SM Supercenter Molino and SM Supercenter Valenzuela.

SM City San Lazaro, SM Supercenter Molino and SM Supercenter Valenzuela all opened in 2005. Currently, these malls have an average occupancy level of 97 percent.

SM Prime expects to sustain its gains this year with the opening of new malls like the Mall of Asia, located on a 60-hectare property overlooking Manila Bay.

This main mall will include shopping and dining establishments, food court, and the country’s first Olympic-size ice skating rink. The North Parking Building will house the SM Department Store and half of the 5,000 parking spaces, while the South Parking Building will include the SM Hypermarket and more dining areas.

One of the mall’s main attractions is the Entertainment Center Building, which will offer a spectacular view of Manila Bay from its row of trendy restaurants. It will also house bowling and billiard facilities, and 10 theaters including a Director’s Club and the country’s first IMAX theater.

The Mall of Asia is envisioned as the premiere destination mall in the Asia Pacific region. It will open on May 2006.

Other malls scheduled to open this year are SM City Clark, SM City Lipa, SM Supercenter Frontera Verde, and SM City Bacolod.

Upon opening of these malls, SM Prime’s total gross floor area will increase to 3.5 million square meters by end-2006 from 2.8 million square meters as of end-2005.

SM Prime opened its 23rd mall, SM City Santa Rosa, last Feb. 17.

The company is bidding for a 27,351-square meter property in Cebu as it beefs up its landbank to ensure its continued expansion and growth. It has a landbank of 1.75 million square meters in 12 locations.

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