SM Prime breaches P1-T market value, first in Philippines

MANILA, Philippines - SM Prime Holdings Inc., the integrated property company of the Sy family, became the first Philippine company to breach P1 trillion in market value.

The company said it reached this milestone in the stock market Monday as its shares continue to move up along with the robust growth of the consumer-driven domestic economy.

“SM Prime acknowledges the investment community’s unwavering support. This is a great moment for us to share this success as we continue to deliver our commitment to our shareholders,” SM Prime chief finance officer John Ong said.

Company officials attributed the achievement of the milestone as well as the success of the company to the integration of all the property businesses under SM Prime in 2013.

“The strategic move of SM Group enabled SM Prime to realize synergies among its business units, increasing efficiencies in operations and revenue in enhanced shareholder value. It also allowed SM Prime to pursue larger projects, from reclaiming land to long-term integrated developments,” it said.

In the first quarter of the year, SM Prime grew its net income 13 percent to P6.6 billion as mall expansions continued and real estate sales remained strong.

Consolidated revenues grew 12 percent to P20.5 billion during the period from P18.2 billion a year ago.

Overall operating income increased 14 percent to P9.6 billion during the quarter from P8.4 billion a year ago as rental revenues from mall expansions in the past two years grew as well as real estate sales and construction accomplishments of residential projects since 2014.

Mall revenues accounted for 62 percent of consolidated revenues and grew 11 percent to P12.7 billion during the period as mall rentals grew 10 percent to P10.7 billion from P9.7 billion with additional retail spaces of 1.1 million square meters of gross floor area added since 2015.

At present, SM Prime has 60 shopping malls in the Philippines and seven in China.

This year, the company will open five new malls in the Philippines – SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.