Posted on June 21, 2017 by Retail News Editor

PHILIPPINES: SM Group honored with 10 awards at the Corporate Governance Asia magazine’s 7th Asian Excellence Award

: PHILIPPINES: SM Group honored with 10 awards at the Corporate Governance Asia magazine’s 7th Asian Excellence Award

JW Marriott Hotel, Hong Kong, 2017-Jun-21 — /EPR Retail News/ — SM Investments Corporation (SM) and its subsidiaries bagged 10 awards from Hong Kong-based Corporate Governance Asia magazine in its 7th Asian Excellence Award held at the JW Marriott Hotel in Hong Kong last June 9.

SM and its subsidiaries SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. (BDO) and China Banking Corporation (China Bank) were chosen as awardees from the Philippines. The 7th Asian Excellence Award 2017 is touted as Asia’s biggest event on IR and Governance awards in Asia in the past seven years.

The magazine recognized SM Director and former President Harley T. Sy, BDO Chairperson Teresita T. Sy-Coson, BDO President Nestor Tan, SM Prime Holdings President Jeffrey Lim and China Bank President Ricardo Chua as Asia’s Best Chief Executive Officers or CEOs.

Cited as Asia’s Best CFO are former SM CFO Jose Sio, now wearing the hat of Chairman and BDO EVP and Treasurer Pedro Florescio III.

SM, SM Prime, BDO, and China Bank bagged Best IR Company including Best Corporate Communications (for SM and BDO), Best Environmental Responsibility (for SM Prime) and Best IR Professionals for SM SVP for Investor Relations and Corporate Communications Corazon Guidote, BDO SVP for IR and Corporate Planning Luis Reyes, Jr. and China Bank SVP for IR and Corporate Relations Alexander Escucha. This is the 6th year that SM clinched the Best IR and Best IR Professional awards.

The Asian Excellence Awards are designed to recognize the achievements and excellence in management acumen, financial performance, corporate social responsibility, environmental practices and investor relations of Asian companies. Since its inception in 2011, CG Asia has bestowed accolades on the Best CEO, Best CFO, Best Corporate Social Responsibility, Best Environmental Practices, Best Investor Relations, Best Investor Relations Professionals and Best Financial Public Relations Companies.

Corporate Governance Asia is now read by 12,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation, case studies and various analyses relating to corporate governance practices in Asia.

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, click here: www.sminvestments.com

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM Investments Corporation

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Posted on March 24, 2017 by Retail News Editor

PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

: PHILIPPINES: SM Investments Corporation honored with seven awards during the 12th Corporate Governance Asia Recognition Awards 2016

Pasay City, Philippines, 2017-Mar-24 — /EPR Retail News/ — SM Investments Corporation (SM) and its subsidiaries received seven awards from Hong Kong-based publication Corporate Governance (CG) Asia during the 12th Corporate Governance Asia Recognition Awards 2016 organized by the magazine.

SM and its subsidiaries/ affiliates SM Prime Holdings, Inc. (SM Prime), BDO Unibank, Inc. (BDO) and China Banking Corporation (China Bank) were chosen as awardees from the Philippines.

CG Asia cited SM, SM Prime and BDO as “Icons on Corporate Governance” for the 11th, 6th and 12th year respectively. China Bank was named as Asia’s Outstanding Company on Corporate Governance for the second consecutive year.

The magazine also recognized SM President Harley T. Sy, BDO Chairperson Teresita T. Sy-Coson and China Bank Chairman Hans T. Sy with the “Asian Corporate Director Award”.

CG Asia seeks to recognize companies who have consistently made the honour rolls in its annual awards in the past 12 years by bestowing to them the highest accolade of Icons in Corporate Governance. This esteemed recognition belongs to the best of the best in corporate governance in Asia as they continue to uphold the best practices no matter what the business cycle is.

The Asian Corporate Director Recognition Awards acknowledge outstanding corporate directors from boards of public and private companies in Asia and have been leaders in guiding their boards and executive management in growing their companies and mantaining the ethics of their respective boards.

The multiple awards given were the following:
SMIC
Icon on Corporate Governance
Asian Corporate Director Award – Mr. Harley Sy

SM Prime
Icon on Corporate Governance

BDO
Icon on Corporate Governance
Asian Corporate Director Award – Ms. Teresita Sy-Coson

China Bank
Outstanding Company on Corporate Governance
Asian Corporate Director Award – Mr. Hans Sy
Corporate Governance Asia is now read by 14,000 of the most important companies in Asia and provides incisive editorial content with extensive coverage on the latest and current developments, legislation, case studies and various analyses relating to corporate governance practices in Asia.

For further information, please contact:
Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

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Posted on March 2, 2017 by Retail News Editor

PHILIPPINES: SM Investments Corporation announces an 8% growth in net income to PHP31.2 billion in 2016

Pasay City, Philippines, 2017-Mar-02 — /EPR Retail News/ — SM Investments Corporation (SM) reported an 8% growth in net income to PHP31.2 billion in 2016. Property accounted for 39% of total earnings, with banks comprising 37% and retail 24%.

“Our core businesses performed well and continue to grow in line with the country’s strong economic development. We are optimistic about continued development and that government plans for infrastructure, agriculture and tourism in particular will enable broader regional growth. SM continues to prioritize regional investment and our nationwide expansion plans are focused on effective execution,” SM President Harley T. Sy said.

SM’s consolidated revenues grew 9% to PHP362.8 billion for the period, up from PHP332.8 billion in 2015. This was driven by an 8% increase in retail revenues and a 12% growth in property revenues.

Retail

Operations under SM Retail Inc., which consist of non-food (THE SM STORE and specialty stores) and food stores (SM Markets), reported sustained growth in total revenues of 8% to PHP276.5 billion, while net income grew 7% to PHP10.6 billion from PHP9.9 billion the previous year.

Early in 2016, SM announced the merger of SM Retail with several leading specialty retail stores with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. The specialty stores added 153 stores nationwide last year.

“Following the retail merger last year, the performance of our specialty retail has been boosted by discretionary spending, especially in areas such as home furnishings and do-it-yourself goods, tracking the strong consumption and overall growth of the economy,” Mr. Sy added.

For its part, THE SM STORE opened four stores in SM San Jose Del Monte in Bulacan, SM Trece Martires and SM Molino in Cavite and SM East Ortigas in Pasig. Total gross selling areas of all 57 department stores stood at 0.75 million square meters.

The food group, which includes SM Markets (SM Supermarket, SM Hypermarket and Savemore) and WalterMart, continued to expand mostly in provincial areas in 2016. The group added 33 new stores, most of which are stand-alone Savemore stores. SM’s food group continues to expand in various regions of the country with a multi-format growth strategy to address the lack of organized retail.

At end-December 2016, SM Retail had a total of 2,110 outlets, comprising 57 THE SM STORES, 1,556 specialty retail outlets, 48 SM Supermarkets, 44 SM Hypermarkets, and 156 Savemore, 39 WalterMart and 210 Alfamart stores.

Property

SM Prime Holdings, Inc., SM’s property holding firm, said its recurring net income grew 14% in 2016 to PHP23.8 billion. Consolidated revenues grew 12% to PHP79.8 billion in 2016. Revenues of its mall business, which includes rentals, cinema and event ticket sales and other revenues, grew 9% to PHP48.6 billion due to added retail spaces in the last two years.

To date, SM Prime has 60 shopping malls in the Philippines (7.7 million sqm GFA) and seven in China (1.3 million sqm GFA) with the recent addition of the Tianjin mall.

The residential group, which consists of SM Development Corporation (SMDC), Highlands Prime and Costa del Hamilo among others, posted consolidated revenues of PHP25.4 billion, up 13%. The growth was largely due to higher sales take-up on ready for occupancy (RFO) units from projects such as Princeton, M Place and Mezza II in Quezon City and Jazz Residences in Makati. SMDC’s reservation sales grew 18% to PHP46.7 billion in 2016, translating to a 15% improvement in unit sales to 16,320 units.

Consolidated revenues of SM Prime’s Commercial Properties Group rose 32% to PHP2.7 billion mainly from the rental revenues from the newly opened FiveEcomCenter that is almost 100% occupied.

SM Prime’s Hotels and Convention Centers posted 32% growth in revenues to PHP3.2 billion largely due to improved occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.

Banking

BDO Unibank, Inc. posted a net income of PHP26.1 billion in 2016. Net interest income grew by 15% to PHP65.6 billion, driven by the 16% growth in gross customer loans to PHP1.5 trillion. Deposits grew 15% to PHP1.9 trillion, primarily in the form of low-cost CASA deposits. Fee-based income was up 15% to PHP22.2 billion while insurance premiums contributed P8.0 billion, compensating for the decline in trading gains to PHP4.8 billion last year.

In January 2017, the Bank successfully completed its rights offer, raising a total of PHP60 billion (USD1.2 billion) in fresh capital. This will allow the Bank to sustain its medium-term growth targets and recent strategic initiatives that include ONB’s expansion and coverage of underserved markets, refocusing efforts on the insurance business through BDO Life, and creating an online stock trading platform to serve a fast-growing market through BDO Nomura. The new capital will also provide a comfortable buffer over higher minimum capital requirements with the staggered implementation of the Domestic Systemically Important Bank (DSIB) surcharge.

China Banking Corporation (China Bank), meanwhile, reported net income growth of 15% to PHP6.4 bilion in 2016 on the back of sustained growth in core and fee-based businesses. Net interest income was up 11% to PHP16.7 billion while gross loans expanded 24% to PHP393.7 billion. Fee-based revenues improved 14% to PHP5.1 billion. Total deposits grew 23% to PHP541.6 billion underpinned by growth in checking and savings accounts by 21% to PHP276.4 billion.

China Bank issued the first tranche (PHP9.6 billion) of its PHP20 billion long-term negotiable certificates of time deposits (LTNCD) in 2016 to support its strategic initiatives and business expansion. Its investment house, China Banking Capital Corporation also put up a stock brokerage house, China Bank Securities Corporation and a special purpose company CBC Assets One (SPC), inc.

Balance Sheet

As of end 2016, total assets of SM grew 10% to PHP861.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 37% net debt to 63% equity.

In 2016, the parent firm raised PHP20 billion from its 7-year Series G retail bonds due in 2023. The bond proceeds will be used to finance future investments and strategic acquisitions in SM’s core business segments, namely property, retail and financial services.

About SM Investments Corporation

SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE; a strong portfolio of leading specialty retailers including Ace Hardware, SM Appliances, Homeworld, Our Home, Toy Kingdom, Watsons and others; and its food retail chains, namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is one of the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s leading bank and in China Banking Corporation (China Bank), the sixth largest private bank. Combined, these two banks have a network of over 1,600 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Source: SM Investments Corporation

Posted on November 9, 2016 by Retail News Editor

SM Investments Corporation reports consolidated net income growth of 11% for the first nine months of the year

Pasay City, Philippines, 2016-Nov-09 — /EPR Retail News/ — SM Investments Corporation (SM) reported an 11% growth in its consolidated net income to PHP22.0 billion for the first nine months of the year. Recurring net income, net of one-time items, grew 9%. Consolidated revenues grew 9% to PHP252.4 billion for the period from PHP230.8 billion.

“Our core businesses are delivering solid growth in line with the investments we have made and against a background of stable economic fundamentals. We are also encouraged by the performance of the recently merged specialty retail stores which delivered double digit topline growth. The intention of the government program to invest heavily in nationwide infrastructure projects should help economic development and drive provincial growth outside Metro Manila which is where we are also directing our investments,” SM President Harley T. Sy said.

Earnings growth was driven by property 13%, banks 11% and retail 7%. For the first nine months, banks and property each accounted for 39% of consolidated earnings and retail 22%.

Retail
Retail operations under SM Retail Inc. reported sustained growth in total sales of 9% to PHP186.0 billion while net income grew 7% to PHP7.0 billion. Revenues from recently acquired specialty retailers grew 13%.

THE SM STORE opened two stores in SM San Jose Del Monte in Bulacan and in SM Trece Martires in Cavite. As of the nine-month period, the total gross selling areas of all 55 department stores stood at 0.7 million square meters.

The Food Retail Group pursued its aggressive expansion in both urban and rural communities nationwide, adding 15 mid-sized format Savemore stores, two SM Supermarkets, one SM Hypermarket and three WalterMart stores for a total of 277 stores. Meanwhile, Alfamart increased its number of stores to 187 stores as of end-September from 99 at the start of the year.

Early in the year, SM announced the merger of SM Retail with several leading specialty retail stores with over 1,400 outlets. The merger received final approval from the Securities and Exchange Commission on 7 July 2016. During the nine-month period, the specialty stores added 95 stores nationwide.

Banking
For the period, BDO Unibank posted a net income of PHP19.3 billion, up 10% as its lending, deposit-taking and fee-based businesses all delivered solid results. Net interest income grew by 16% to PHP48.4 billion, supported by 15% growth in customer loans to PHP1.4 trillion and 14% growth in deposits to PHP1.8 trillion. Fee-based income was up 15% to PHP16.0 billion.

China Banking Corporation reported net income growth of 31% to PHP4.8 bilion for the first nine months due to strong growth in its core and fee-based businesses. Net interest income was up 9% to PHP12.3 billion while net loans expanded 19% to PHP343.1 billion and fee-based revenues improved 42% to PHP4.2 billion.

Property
SM Prime Holdings, Inc. (SM Prime) reported recurring net income growth of 13% in the first nine months to PHP17.5 billion driven by growth in leasing and property sales. Consolidated revenues rose 11% to PHP57.8 billion.

Rental revenues grew 12% to PHP31.7 billion with mall and commercial leasing accounting for 96% of the total rental revenues. Total mall revenues rose 9% to PHP35.2 billion with same-store growth averaging 7%. Total revenues from the commercial group registered a 44% growth to PHP1.9 billion.

SM Prime’s residential group, under SM Development Corp., recorded higher revenues by 10% to PHP18.7 billion and accounted for 32% of total revenues. Residential net income rose 15% to PHP4.3 billion. Growth was largely driven by sales on ready for occupancy (RFO) units. SMDC’s reservation sales climbed 25% to PHP36.4 billion in sales value.

Revenues of the hotels and convention centers business grew by 23% in the first nine months of 2016 to PHP2.1 billion.

rong>Balance Sheet
As of end-September 2016, total assets of SM grew 9% to PHP813.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 39% net debt to 61% equity.

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM is one of the more responsible companies in the country due to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

For more about SM, visit www.sminvestments.com

Source: SM Investments Corporation

Posted on May 4, 2016 by Retail News Editor

SM Investments Corporation records 12% growth in recurring net income in the first quarter of 2016

Pasay City, Philippines, 2016-May-04 — /EPR Retail News/ — SM Investments Corporation (SM) posted a 12% growth in recurring net income in the first quarter of 2016. Consolidated net income (including non-recurring items) stood at PHP 7.0 billion for the January to March period, up 3.6% from PHP 6.7 billion in the same period last year. Consolidated revenues grew 7% to PHP 69.8 billion for the first quarter.

“We are pleased with SM’s strong underlying growth in the first quarter as consumer spending continued to be vibrant and sentiment about the Philippine economy remains strong. Our continuing efforts to improve efficiency in all our businesses have also helped ensure solid earnings growth,” SM President said.
For the first quarter, property accounted for 43% of SM’s consolidated net income, followed by banks at 36% and retail at 21%.

Retail
Retail operations under SM Retail Inc., which consist of both food (SM Markets) and non-food (THE SM STORE), reported sustained growth in total sales of 8% to PHP 48.8 billion in the first quarter, while net income rose 16% to PHP 1.5 billion.

SM’s food retail business continued to expand, adding five new stores. At end-March, SM Retail had a total of 314 stores comprising 53 THE SM STOREs, 45 SM Supermarkets, 44 SM Hypermarkets, 140 Savemore and 32 WalterMart stores.

Following their acquisition last year and recent modernization, two Cherry Foodarama grocery stores are now fully operational inside SM Cherry malls in Shaw and Congressional Avenue.

SM earlier announced the merger of SM Retail with a group of specialty retail stores such as Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company and Sports Central. The combined entity will have over 1,900 outlets and 2.4 million sqm of gross floor area.

Banking
For the first quarter of 2016, BDO Unibank posted a net income of P 5.5 billion as core lending, deposit-taking and fee-generating businesses delivered solid numbers. Net Interest Income grew by 17% to P 15.5 billion, supported by the 15% jump in customer loans to PHP 1.3 trillion and a 14% growth in deposits to PHP 1.7 trillion.

Property
SM Prime Holdings, Inc. (SM Prime) reported a recurring net income growth of 12% in the first quarter to PHP 5.8 billion. Consolidated revenues rose 10% to PHP 18.2 billion.

Rental revenues from malls and commercial spaces, which accounted for 59% of the total, grew 14% to PHP 10.8 billion. On the other hand, total mall revenues rose 11% to PHP 11.0 billion from PHP 9.9 billion in the previous year. Excluding the new malls and expansions, same-store growth averaged 7%. Total revenues from the commercial group registered a 16% growth in revenues to PHP 887.2 million.

SM Prime’s residential group, which accounted for 32% of total revenues, recorded higher revenues by 5% to PHP 5.8 billion in the period largely on higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015.
The hotels and convention centers business grew by 22% in the first quarter of 2016 to PHP 617.2 million in terms of revenues.

Balance Sheet
As of end-March, total assets of SM grew 6% to PHP 760.5 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 36% net debt to 64% equity.

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr., is one of the country’s largest publicly listed companies with a sustainable group of businesses that thrives on synergies of its banking, property and retail operations. SM has grown into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart. 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 seventh largest bank.

For more about SM, click here: www.sminvestments.com

Contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117

Source: SM

Posted on February 29, 2016 by EPR Retail News Editors

Philippines: SM Investments Corporation report 13% growth in recurring net income in 2015

Pasay City, Philippines, 2016-Feb-29 — /EPR Retail News/ — SM Investments Corporation (SM) reported a 13% growth in recurring net income in 2015. Consolidated net income stood at PHP28.4 billion in 2015, posting the same level as last year. Consolidated revenues grew 7% to PHP295.9 billion for the period.

“Our strong underlying earnings growth in 2015 was due to favorable domestic market conditions and improved efficiencies which helped us widen our margins particularly in retail and property,” SM President Harley T. Sy said.

SM’s underlying earnings increase was driven by a 17% growth in retail earnings, 14% growth in property recurring net income and 10% growth in bank net income. For 2015, banks accounted for 40% of SM’s consolidated earnings, property 38% and retail 22%.

Retail
Retail operations under SM Retail Inc., which consist of both food (SM Markets) and non-food (THE SM STORE), reported sustained growth in total sales of 7% to PHP211.4 billion, while net income rose 17% to PHP6.8 billion.

SM Markets, which consist of the brands SM Supermarket, SM Hypermarket and Savemore, continued to expand in both urban and rural communities in various parts of Luzon, Visayas and Mindanao. The group added 31 new stores, most of which are standalone Savemore stores.

SM Markets today follows a multi-format growth strategy to address the lack of organized retail in many parts of the country, largely diversifying from its previous strategy of operating anchor stores in malls.

SM Markets also recently invested in the minimart business with Alfamart, a highly successful minimart operator in Indonesia, and forged partnerships with WalterMart and Citymalls to further facilitate its provincial growth. Acquisition of existing chains of stores is another part of its growth strategy, the latest of which was the acquisition of three stores of Cherry Foodarama.

Last year, THE SM STORE opened three stores in San Mateo, Rizal; Cabanatuan, Nueva Ecija and Seaside Mall in Cebu City. As of 2015, the total net selling area of all 53 SM STOREs stood at 471,000 sqm. In 2015, top British department store chain John Lewis opened its first shop-in-shop in SM Makati which offers a wide range of home products. American home retailer Crate & Barrel also opened its flagship store in SM Makati last year.

At end-December 2015, SM Retail had a total of 310 stores, comprising 53 THE SM STORES, 45 SM Supermarkets, 44 SM Hypermarkets, 136 Savemore stores and 32 WalterMart stores.

Banking
BDO Unibank, Inc. (BDO) recorded net interest income growth of 11% to PHP57.0 billion in 2015, with net income up 10% to an all-time high of PHP25.0 billion.

Gross customer loans grew 17% to PHP1.3 trillion and total deposits rose by 12% to PHP1.7 trillion.

The year end results reflected the completion of BDO’s acquisition of One Network Bank, the largest rural bank in Mindanao, in July. ONB has 98 active branches. The acquisition of ONB expands the regional presence of BDO in the country, particularly in its target market in the southern Philippines and opens up business lines for BDO.

China Banking Corporation (China Bank) reported net interest grew 7% to PHP15.1 billion, with net income higher by 10% to PHP5.6 billion on the back of sustained growth in core business operations.

Property
SM Prime Holdings, Inc., SM’s property holding firm said its recurring net income grew 14% in 2015 to PHP20.9 billion. Consolidated net income increased 54% to PHP28.3 billion which includes a PHP7.4 billion trading gain on marketable securities booked in the first quarter.

Consolidated revenues rose 8% to PHP71.5 billion last year. Rental revenues from malls and commercial spaces increased by 12% to PHP40.7 billion in the period. The housing group’s reservation sales grew by 12% to 14,390 units. For the period, the housing group’s net income increased 8% to PHP5.1 billion.

To date, SM Prime has a total of 56 Malls in the Philippines with total retail space of 7.3 million square meters. This includes SM Seaside City Cebu, SM Center Sangandaan, SM Cherry Shaw, SM City Cabanatuan, SM City San Mateo and SM Megacenter Cabanatuan. In China, SM Prime has six shopping malls with a GFA of 0.9 million sqm including the recently opened SM City Zibo. Taking into account both Philippine and China malls, SM Prime’s total retail space is at 8.3 million sqm.

SM Prime presently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay. For 2016, SM Development Corporation will launch between 11,000 to 14,000 units in Quezon City, Bicutan and Sucat in Paranaque, Las Piñas and Pasay at the Mall of Asia Complex. SM Prime is also set to launch new mixed-use developments in Bulacan, Pampanga and Cavite.

Currently, the Commercial Properties Group has five office buildings with an estimated gross floor area of 318,000 sqm. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2017 and 2019, respectively. For hotels and convention centers, the 347-room Conrad Hotel Manila is expected to open in the second half 2016 which is seen to further enhance the value of the properties within the whole Mall of Asia (MoA) Complex.

Balance Sheet
As of end 2015, total assets of SM grew 8% to PHP771.2 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 36% net debt to 64% equity.

# # #

About SM Investments Corporation
SM Investments Corporation, founded by entrepreneur Henry Sy, Sr. is the country’s largest publicly listed holding company with a sustainable group of businesses that thrives on leadership, innovation and the synergies of its banking, property and retail operations. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of non-food under THE SM STORE and food under SM Markets consisting of SM Supermarket, SM Hypermarket, and Savemore as well as Waltermart and Alfamart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related proprty development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Posted on August 6, 2015 by EPR Retail News Editors

SM Investments Corporation reported consolidated net income of PHP13.5 billion for the January to June period, 10% increase over last year

Pasay City, Philippines, 2015-8-6— /EPR Retail News/ — SM Investments Corporation (SM) reported consolidated net income of PHP13.5 billion for the January to June period, an increase of 10% over last year. Excluding extraordinary items, recurring income grew by 13% during the first half of 2015.

Consolidated revenues were up 6% to PHP138.9 billion in the first half from P130.9 billion in the same period last year.

“Our core businesses continue to deliver good revenue and earnings growth. Earnings growth in Property is now in the mid teens, in line with our medium term goals. The Retail Group maintained its pace through organic growth and store expansion despite its already significant size and intense competition. Our focus on costs across the group resulted in improved operating margins. While we are pleased with the results so far, we are keeping our eyes on the challenges ahead,” SM President Harley T. Sy said.

Property led the growth, increasing its share of consolidated net income to 42%. This was followed by the banks with 38% and retail with 20%.

Property
SM Prime Holdings, Inc. registered consolidated net income of PHP18.7 billion, up 90% compared with PHP9.8 billion in the same period last year. Excluding one-time trading gains on the sale of marketable securities, recurring net income was up 15% to PHP11.2 billion year-on-year.

Consolidated revenues reached PHP35.9 billion, an increase of 8% from PHP33.3 billion in the same period last year. Rental revenues from retail and commercial spaces accounted for 54% of consolidated revenues and grew 10% in the period to PHP19.4 billion, driven by new malls, offices and the expansion of shopping spaces in existing malls in 2013 and 2014. Same store rental stood at 7%.

In the first half of 2015, SM Prime opened SM Megacenter Cabanatuan and SM City San Mateo bringing the total Philippine operating malls to 52 with a GFA of almost 6.6 million sqm.

For the rest of the year, SM Prime is set to open one mall in Metro Manila, SM Center Sangandaan in Caloocan, and two malls outside Metro Manila, namely SM City Cabanatuan in Nueva Ecija and SM Seaside City Cebu. The company is also expanding two existing malls, SM City Lipa in Batangas and SM City Iloilo.

The housing group, led by SM Development Corporation (SMDC), recorded a 3% increase in real estate sales to PHP12.3 billion. As a result, net income stood at PHP3.0 billion, up 8%. Growth in the residential segment was largely due to higher sales take-up and construction accomplishments of projects launched in 2010 to 2013.

Consolidated costs on real estate of the housing group improved to PHP6.7 billion from PHP6.8 billion mainly on improving cost efficiencies, tighter monitoring and control of construction costs since 2012. This boosted gross profit margin on real estate sales to 46% from 43% in the first half of 2015 and net income margin to 24% from 23% for the same period.

For 2015, SMDC will launch at least five new condominiums with about 12,000-15,000 units in total.

In the commercial office space, SM Prime recently launched SM Cyberwest in Quezon City and unveiled FiveE-comCenter at the MOA Complex which is already fully occupied.

For hotels and convention centers, Conrad Manila in the Mall of Asia Complex in Pasay and Park Inn by Radisson Clark in Pampanga are expected to open in the last quarter of 2015.

Banking
BDO Unibank, Inc. (BDO) recorded net income of PHP11.7 billion on the sustained growth in the bank’s lending and deposit-taking businesses, notable gains from fee-based and treasury activities and managed operating expenses.

Net interest income grew 10% in the six-month period to PHP27.1 billion. Customer loan portfolio grew 16% to PHP1.1 trillion while CASA deposits advanced 17%.

Further strengthening its platform to serve a fast growing market, BDO signed an agreement with Nomura Holdings, Inc. for a joint investment in PCIB Securities. The joint venture will initially provide online trading services for local stocks to individual investors and eventually expand its services to include cross-border investment opportunities to a broader range of investors. The transaction is still subject to relevant regulatory approvals.

BDO has also succesfully completed its acquisition of One Network Bank, the largest rural bank in Mindanao.

China Banking Corporation reported net income growth of 14% to PHP2.5 bilion for the first half, driven by strong growth in its core businesses.

Net interest income was up 9% to PHP7.4 billion on the back of higher loans volume and lower interest expense. Net loans expanded 10% year-on-year to P289.3 billion. The CASA to total deposits ratio stood at 51%.

Retail Operations
Retail operations under SM Retail reported sustained growth in total sales of 6% to PHP96.7 billion, while net income rose 13% to PHP3.1 billion.

SM’s food retail business continued to expand in both urban and rural communities, adding 20 new stores in various parts of Luzon, Visayas and Mindanao.

At end-June 2015, SM Retail had a total of 289 stores, comprising 51 THE SM STORES, 41 SM Supermarkets, 43 SM Hypermarkets, 127 Savemore stores and 27 WalterMart stores.

SM Retail is finalizing the acquisition of three stores of Cherry Foodarama located in Mandaluyong, Quezon City, and Antipolo.

Meanwhile, Alfamart has increased its number of stores to 50 as of end-June.

For its part, THE SM STORE opened its 51st store in San Mateo Rizal. As of the first half, the total gross selling area of all 51 SM STOREs stood at over 683,000 sqm.

International retail chain Crate & Barrel, specializing in houseware and furniture, opened its flagship store at THE SM STORE Annex in Makati in July. Spanning 2,800 sqm, the new store is one of the largest in the Philippines after its stores in Mega Fashion Hall at SM Megamall in Mandaluyong City and in SM Aura in Taguig.

Balance Sheet
As of end-June 2015, total assets of SM grew 7% to PHP721 billion. SM maintains a healthy balance sheet with a conservative gearing ratio of 38% net debt to 62% equity.

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About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the most highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of THE SM STORE and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc., is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest private bank. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

Posted on November 6, 2014 by EPR Retail News Editors

SM Investments Corporation reported PHP18.2 billion net income for the first nine months of 2014

Pasay City, Philippines, 2014-11-6— /EPR Retail News/ — SM Investments Corporation (SM) reported a net income of PHP18.2 billion for the first nine months of 2014 from PHP18.6 billion during the same period last year. Consolidated revenues grew 7.7% to PHP193.2 billion in the period ended September 30 from PHP179.4 billion in the same period last year.

On a recurring basis, consolidated net income grew 13.7% to PHP18.1 billion from PHP15.9 billion. Underlying revenues also grew 9.4% to PHP192.9 billion from PHP176.3 billion. The reported net income in 2013 included exceptional items such as the trading gains in the Group’s banking businesses which boosted earnings of a number of banks during that period, among them BDO Unibank.

“We were able to sustain solid revenue growth across our core businesses of retail, banking and property. We also saw more robust real estate sales in the quarter with the launch of new projects. Our underlying profitability was driven by strong delivery of BDO and steady property contribution. In retail, gross margins have stabilized despite the intensifying competition, and we remain committed to expanding to new formats to tap the unserved and underserved markets,” SM President Harley T. Sy said.

Net Income Profile
Banks accounted for 41.9% of SM’s consolidated net income in the first nine months and property accounted for 39.1% while retail contributed 19.0%.

Banking
BDO Unibank, Inc. (BDO) recorded a net income (attributable to equity holders of the parent) of PHP16.7 billion compared with PHP18.2 billion in the first nine months of 2013 which reflected non-recurring trading gains. BDO’s first nine months core income represents a 20% growth.

Net interest income in the first nine months grew 21% and continued to be the main earnings driver at PHP 37.5 billion. This is primarily due to the bank’s customer loan business which expanded 22% to PHP1.0 trillion. Total deposits registered PHP1.4 trillion, 18% higher than previous year.

BDO’s total capital adequacy ratio (CAR) of 14.1% and common equity tier 1 (CET 1) ratio of 12.7% under the current Basel III environment are well above the regulatory minimum of 10% and 8.5% percent respectively.

Property
SM Prime Holdings, Inc. (SM Prime) reported consolidated net income increased 11.8% to PHP13.5 billion in the first nine months from PHP12.0 billion in the same period last year. Consolidated revenues grew 8.5% to PHP47.8 billion in the January to September period from PHP44.0 billion the previous year.

Rental revenues accounted for 55% of the consolidated revenues, and grew by 11.2% to PHP26.4 billion in 2014 from PHP23.8 billion in the same period in 2013.

Same-store rental growth was at 7.0% in the first nine months.

The increase in rental revenue was primarily due to the new and expanded malls in 2013 and 2014 such as SM Aura Premier in Taguig, SM City BF Paranaque, Mega Fashion Hall in SM Megamall in Mandaluyong and SM Cauayan in Cagayan Valley with a combined 527,000 sqm. Part of the growth was from TwoE-comCenter in Mall of Asia Complex which opened in 2013 and is now fully occupied.

SM Prime recently expanded its malls in Bacolod and in Lipa, Batangas which contributed a combined 295,811 sqm to the company’s gross floor plate. In terms of commercial spaces, SM Prime topped off FiveE-ComCenter, a 15- level office building at the Mall of Asia Complex with a gross floor area of 125,716 sqm and approximately 85,000 sqm of leasable area. It also broke ground on ThreeE-comCenter, also a 15-storey building featuring semi-circular twin towers with a total GFA of 111,727 sqm.

These new office buildings will continue to establish the E-comCenters as a premier address in the Mall of Asia Complex in Pasay City given its ideal location and master-planned environment.

In the third quarter, real estate sales grew 18.1% to PHP3.4 billion, reversing the cumulative decline in the previous quarters. SM Prime’s residential development arm, SM Development Corp. (SMDC) posted a 12% increase in revenues to PHP3.7 billion in the third quarter from PHP3.3 billion a year ago. The strong performance was driven by more projects nearing completion, particularly Grace, Shell and Breeze Residences.

As of September, real estate sales comprise 33% of total revenues at PHP16.0 billion, slightly higher than the previous year’s PHP15.8 billion. SM Prime expects improved results as more condominium projects are completed. Thus far SMDC has 22 projects.

Cinema ticket sales rose 20.6% to PHP3.3 billion in the nine-month period from PHP2.7 billion in 2013 largely due to the international and local blockbuster movies shown as well as the opening of digital cinemas at the new and expanded malls.

Amusement and other revenues increased by 20% to PHP2.1 billion during the nine-month period. This was due to the strong patronage of amusement rides and additional recreational facilities in various malls.

In the third quarter, SM Prime successfully issued PHP20 billion in retail bonds with tenors of 5.5
years, seven years and 10 years. The bonds fetched fixed interest rates of 5.1000%, 5.2006% and 5.7417% respectively.

Retail Operations
For the first nine months of 2014, SM Retail’s net income grew 5.0% to PHP3.8 billion. Total sales rose 9.2% to PHP136.4 billion. SM continues to be a market leader in the Philippines. The food retail business in particular is on an aggressive expansion mode to penetrate the informal sector and both urban and rural communities. In the department store business, the SM Store continues to introduce fresh concepts and its expansion is on track in line with the completion of new SM malls.

At the end of the three quarters of 2014, SM Retail opened 16 new stores, bringing the total to 255 stores, consisting of 49 SM Stores, 40 SM Supermarkets, 41 SM Hypermarkets, 102 Savemore stores and 23 WalterMart stores. This year, the SM Store opened in Cauayan, Isabela. In terms of food retail stores, SM opened 15 new stores in various parts of Luzon, Visayas and Mindanao.

SM Balance Sheet
The total assets of SM grew 8.3% in the first nine months to PHP685.6 billion. As of end-September 2014, SM maintains a healthy balance sheet with a gearing ratio of 40% net debt to 60% equity.

SM raised PHP15 billion in May 2014 from a public offer of peso-denominated retail bonds with maturity of seven and 10 years. The SM bonds are rated PRS Aaa by Philippine Rating Services Corporation, the highest rating assigned by the credit rating firm.

In June 2014, SM issued a USD350 million 10-year senior unsecured bond at a fixed rate of 4.875% per annum, a landmark transaction marking the longest-dated USD bond issued by SM and the company’s fourth USD bond issuance since 2009. The issuance earned SM the Region’s Best Borrower Award from Hong Kong publication Finance Asia.

Recently, SM, BDO and SM Prime were awarded Asia’s Icon on Corporate Governance while China Banking Corporation was cited as one of among Asia’s Outstanding Companies on Corporate Governance by Hong Kong magazine Corporate Governance Asia. SM Vice Chairperson and BDO Chairperson Teresita T. Sy-Coson and SM Prime President Hans T. Sy were cited for the Asian Corporate Director award.

About SM Investments Corporation
SM Investments Corporation (SM) is one of the leading conglomerates in the Philippines with highly synergistic businesses in retail, banking and property development. SM has evolved into one of the highly respected companies in the country owing to its progressive approach in business and its comprehensive sustainability programs for its host communities through SM Foundation and SM Cares.

SM’s retail operations enjoy a strong brand franchise consisting of The SM Store and its food retail chains namely SM Supermarket, SM Hypermarket, Savemore and WalterMart stores. SM’s property arm, SM Prime Holdings, Inc. is among the largest integrated property developers in the Philippines with interests in mall, residential, commercial and tourism development. SM’s interests in banking are in BDO Unibank, Inc. (BDO), the country’s largest and in China Banking Corporation (China Bank), the fifth largest. Combined, these two banks have a network of over 1,000 branches nationwide.

For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
E-mail: cora.guidote@sminvestments.com
Tel. No. (632) 857-0117
www.sminvestments.com

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