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SM Prime increased ’08 profit by 7% to P6.4b

[ ] February 21-22, 2009

SM Prime Holdings Inc., the country’s dominant shopping mall developer and operator, reported a 7 percent increase in net income for 2008 to P6.4 billion from P6 billion in 2007.

Net profit in 2007 rose at a faster rate of 10 percent.

Revenues in 2008 grew 12 percent to P17.8 billion from P15.3 billion a year ago, after full-year results included the operations of three SM malls in China following their acquisition in late 2007.

The SM China malls are located in the cities of Xiamen and Jinjiang in southern China and Chengdu in central China.

“Notwithstanding the global financial situation, SM Prime achieved its goals and sustained its expansion in 2008. The company performed fairly well and was able to deliver on its targets and objectives due mainly to the unwavering support of its loyal customers, tenants, suppliers, shareholders and employees,” SM Prime president Hans Sy said in a statement.

Rental fees accounted for the largest share of SM Prime’s consolidated revenues, amounting to P15.4 billion, up 15 percent year-on-year.

Bulk of the increase came from additional space in new malls and mall expansions during the year. Four malls opened last year, namely SM City Marikina, SM City Rosales, and SM City Baliwag while mall expansions included The Annex at SM City North Edsa, and The Atrium at SM Megamall.

“Put together, the new malls and expansions in 2008 added 9 percent, equivalent to 353,000 square meters in gross floor area for a total of 4.3 million sq. m.,” the company said.

The average occupancy rate of the new malls now stands at 93 percent.

Meanwhile, cinema ticket sales during the year were flat due to a dearth of movie blockbusters.

SM Prime this year plans to open SM City Naga in Camarines Sur, SM City Rosario in Cavite, SM City Pamplona in Las Piñas and the Sky Garden at SM City North Edsa.

The company is also set to expand SM City Rosales in Pangasinan.

The company plans to increase its operation to 36 malls nationwide by the end of 2009 and three in China, with an estimated gross floor area of 4.9 million sq. m. Jenniffer B. Austria


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