PHILIPPINES: SM reported consolidated net income rose 8% to PHP23.8 billion for the first nine months of 2017

Pasay City, Philippines, 2017-Nov-09 — /EPR Retail News/ — SM Investments Corporation (SM) reported consolidated net income rose 8% to PHP23.8 billion for the first nine months of the year. Recurring net income, net of one-time items, climbed 13%. Consolidated revenues likewise grew 8% to PHP272.2 billion for the period from PHP252.7 billion in the same period last year.

“Our solid third quarter results benefitted from vibrant growth in our property and retail businesses. Property earnings were driven by nationwide mall expansion and the strong performance of residential developments. Retail also gained from footprint expansion and robust consumer sentiment, particularly in specialty retailing. We remain confident that our growth plans are on track,” SM President Frederic DyBuncio said.

For the first nine months, property accounted for 40% of consolidated earnings, banks at 38% and retail 22%.

Retail

Retail operations under SM Retail Inc. reported growth in total sales of 6% to PHP197.9 billion while net income rose 10% to PHP7.7 billion. Revenues from Specialty Retail grew 9%.

THE SM STORE opened two stores in Cagayan de Oro and in Puerto Princesa during the nine-month period. Total gross selling areas of all 59 department stores stood at over 750,000 square meters.

The Food Retail Group continued its aggressive expansion adding 21 mid-sized format Savemore stores, three SM Supermarkets and two WalterMart stores for a total of 26 new stores year to date. Most of these new stores were located in communities outside Metro Manila. Meanwhile, Alfamart increased its number of stores to 320 as of end-September from 210 at the start of the year.

Specialty Retail added 68 new stores during the nine-month period.

Property

SM Prime Holdings, Inc. (SM Prime) reported net income expanded by 15% in the first nine months of the year to PHP20.0 billion driven by additional rental revenues from mall expansions, consistent growth in same-mall-sales and higher contribution from residential sales. Consolidated revenues likewise rose 12% to PHP64.7 billion.

Mall revenues rose 10% to PHP38.6 billion. Mall rentals increased 10% to PHP32.8 billion due to expansions and new malls that opened in 2016 and 2017 while same-mall-sales sustained its 7% growth.

Consolidated revenues of SM Prime’s residential group, which includes SM Development Corp. (SMDC), expanded by 10% to PHP20.5 billion due to increase in sales take-up of ready-for-occupancy (RFO) units and construction accomplishments of SMDC. Reservation sales surged 18% to PHP42.1 billion in sales value in the first nine months.

The rest of SM Prime’s businesses which includes offices, hotels and convention centers registered revenue growth of 39% to PHP5.8 billion.

Banking

BDO Unibank earned PHP20.4 billion, up 5%, on sustained growth in its core lending, deposit-taking and fee-based businesses. Net interest income grew by 23% to PHP59.8 billion, supported by 18% growth in customer loan portfolio to PHP1.7 trillion and 15% growth in deposits to PHP2.1 trillion. Fee-based income was up 30% to PHP20.8 billion.

Balance Sheet

As of end-September 2017, total assets of SM grew 16% year-on-year to PHP942.4 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 43% net debt to 57% equity.

About SM Investments Corporation
SM Investments Corporation is a leading Philippine company that is invested in market leading businesses in retail, banking and property. It also invests in ventures that can capture high growth opportunities in the emerging Philippine economy. It looks for market leaders or those with potential to become leaders in their chosen sectors that offer synergies and attractive returns and cashflows.

SM’s retail operations are the country’s largest and most diversified with its food, non-food and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest bank and China Banking Corporation (China Bank), the 7th largest bank.

For more about SM, visit www.sminvestments.com

For further inquiries, please contact:
Mr. Tim Daniels
Investor Relations
SM Investments Corporation
E-mail: tim.daniels@sminvestments.com
Tel. No. (632) 857-1039

Source: SM Investments Corporation

SM Prime Holdings announces its consolidated net income for third quarter of 2016

Pasay City, Philippines, 2016-Nov-08 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a consolidated net income growth of 15% to PHP4.9 billion in third quarter of 2016 from PHP4.2 billion in the same period last year. Overall revenues in the third quarter also went up by 14% to PHP18.5 billion from PHP16.3 billion. This brought nine months consolidated net income to PHP17.5 billion from PHP15.5 billion, a 13% increase from same period last year. Overall revenues of the company improved by 11% to PHP57.8 billion from PHP52.2 billion in the first nine months driven by the sustained growth of its key business units – rental operations and real estate sales.

“SM Prime sustained its overall performance as it benefited from the continued growth of the economy. The synergy and contribution of our business units are reflected in our strong results. We expect SM Prime’s success to continue over the medium-term as economic growth spread to the rest of the Philippines, which should bode well with our expansion in other key cities and provinces,” SM Prime President Jeffrey Lim said.

Philippine overall mall revenues increased by 9% to PHP32.1 billion from PHP29.4 billion. Rentals posted an 11% growth to PHP26.9 billion from PHP 24.2 billion. This was driven by a 7% growth in same-mall-sales, as well as new retail spaces of 1 million square meters (sqm) in gross floor area (GFA) that were added in the past two years. Cinema and event ticket sales are at PHP3.44 billion, slightly higher from last year’s performance of PHP3.4 billion. Revenues generated from amusements and merchandise sales posted the same amount of PHP1.8 billon from same period last year. Operating income increased by 10% to PHP17.8 billion from PHP16.1 billion in the same period last year as margins slightly improved to 55.3% from 54.9%.

Meanwhile, SM Prime’s China mall revenues rose by 5% to PHP3.1 billion from PHP2.9 billion; while its operating income grew by 6% to PHP1.5 billion from PHP1.4 billion, maintaining the previous year’s operating income margin of 49%.

Currently, SM Prime has 58 malls in the Philippines and six in China with a GFA of 8.5 million sqm. SM Prime is scheduled to open SM East Ortigas this December while SM City Tianjin will open in phases towards the end of the year. By the end of 2016, SM Prime will have a combined GFA of almost 9 million sqm.

SM Prime’s residential group, led by SM Development Corporation (SMDC), contributed 32% to consolidated revenues and grew by 10% to PHP18.7 billion from PHP16.9 billion in the same period under review. Operating income, likewise grew by 10% to PHP5.1 billion from PHP4.6 billion. The growth was largely due to the sales take-up on ready for occupancy (RFO) units from projects such as Princeton Residences, M Place Residences, Mezza II Residences and Jazz Residences in the cities of Quezon and Makati. Consolidated costs of real estate increased by 8% to PHP9.6 billion from PHP9.0 billion resulting to improved gross profit margins of 48% from 46% for the residential group; while net income margin stood at 23% from 22% in the same period last year.

SMDC’s reservation sales jumped by 22% growth in sales value to PHP35.5 billion in the first nine months of the year from PHP29.1 billion last year. This is equivalent to a 20% increase in unit sales to 12,579 units from 10,520 units. The strong sales take-up is attributed to projects that are within and near the Mall of Asia Complex in Pasay City, namely S Residences, Shore 2 Residences and Coast Residences.

To date, SM Prime has launched three new projects and expanded its existing developments equivalent to 6,000 units in the cities of Las Pinas, Pasay and Taguig. SM Prime is set to launch new and expanded housing projects in the cities of Quezon, Pasay, and Tagaytay. The launch also includes economic housing projects in the provinces of Bulacan.

The Commercial Properties Group, which accounted for 3% of consolidated revenues, posted a growth of 44% in revenues to PHP1.9 billion from PHP1.3 billion year-on-year. This led to rising operating income of PHP1.4 billion from PHP700 million, which in turn enhanced the operating income margin to 75% from 56%. The growth came from the new rental revenues of FiveE-com Center. SM Prime’s Commercial Properties Group presently has six office buildings mostly at the Mall of Asia Complex in Pasay City with an estimated GFA of 371,000 sqm. The company will add more office spaces in the coming years as ThreeE-Com and FourE-Com Centers are currently under construction.

The Hotels and Convention Centers revenues are up by 23% to PHP2.1 billion from PHP1.7 billion on the first nine months of the year. Operating income grew by 6% to PHP330.0 million from PHP312.0 million. Revenues are buoyed by the improvement in average room and occupancy rates. The opening of Park Inn in Clark last December 2015 and Conrad Manila in Pasay City last June also boosted the overall performance of the hotel group.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

For further information, please contact:
Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940

Source: SM Prime Holdings, Inc.