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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PHILIPPINES: SM Prime announces a recurring net income growth of 14% in 2016 vs. previous year

Pasay City, Philippines, 2017-Feb-22 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, registered a recurring net income growth of 14% in 2016 to PHP 23.8 billion from PHP 20.9 billion last year. Consolidated revenues grew 12% to PHP 79.8 billion in 2016 from PHP 71.5 billion in 2015. Overall operating income improved by 12% to PHP 35.3 billion in 2016 from PHP 31.4 billion the prior year. Growth was mostly driven by the continued expansion of its malls as well as the strong sales take-up of housing units.

“SM Prime sustained its overall performance in 2016 on the account of focusing more on recurring income stream complemented by the solid performance of the housing group. SM Prime is well-positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country,” SM Prime President Jeffrey Lim said.

SM Prime’s mall revenues grew by 9% to PHP 48.6 billion from the previous year’s PHP 44.5 billion. Rentals improved by 10% to PHP 41.0 billion from PHP 37.2 billion in the same period under review. The revenue growth was driven by additional retail spaces of 1.5 million square meters (sqm) of gross floor area (GFA) added in the past two years. Meanwhile, same-mall sales growth was consistent at 7%. Cinema and event ticket sales was slightly down by 3% to PHP 4.7 billion in 2016 from PHP 4.8 billion in the same period. The decline was due to fewer local blockbuster movies shown in 2016 compared with 2015. Revenues from amusement and merchandise sales rose by 16% to PHP 3.0 billion from PHP 2.6 billion. The revenue growth mostly came from higher merchandise sales and new amusement centers in the company’s newer malls. Mall operating income likewise improved by 9% to PHP 25.8 billion in 2016 from PHP 23.7 billion in 2015, while operating margins stood at 53%.

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). For 2017, SM Prime will open at least four new malls in the Philippines with an estimated combined 300,000 sqm of additional shopping space.

SM Prime’s residential group, led by SM Development Corporation (SMDC), contributed 32% to consolidated revenues and grew by 13% to PHP 25.4 billion from PHP 22.5 billion in the same period under review. Operating income, also improved by 17% to PHP 7.1 billion from PHP 6.1 billion. The growth was largely due to higher sales take-up on ready for occupancy (RFO) units from projects such as Princeton, M Place, Mezza II and Jazz Residences in Quezon City and Makati. RFO inventory went down by 34% to 2,374 units in 2016 from 3,617 units in 2015.

Consolidated costs of real estate increased by 9% to PHP 13.1 billion from PHP 12.0 billion of last year. This led to improved gross profit margin of 48% from 46% for the residential group; while the net income margin improved to 23% from 22%.

SMDC’s reservation sales grew by 18% in terms of sales value to PHP 46.7 billion in 2016 from PHP 39.4 billion last year. This translates to a 15% improvement on unit sales to 16,320 units from 14,227 units. The strong sales take-up was generated from projects that are within and near the Mall of Asia Complex in Pas City, namely S Residences, Shore 2 Residences and Coast Residences. For 2017, SM Prime is scheduled to launch 15,000 to 18,000 residential units that includes high rise, mid-rise and horizontal house and lot developments.

SM Prime’s Commercial Properties Group, contributed 3% to consolidated revenues, recorded a 32% increase to PHP 2.7 billion from PHP 2.1 billion year-on-year. This brought operating income growth to 57% to PHP 2.1 billion from PHP 1.3 billion the previous year, which in turn enhanced the operating income margin to 77% from 65%. The growth came from the new rental revenues from FiveE-comCenter, which is almost 100% occupied. The Commercial Properties Group has six office buildings, mostly in the Mall of Asia Complex in Pasay City, with an estimated GFA of 371,000 sqm. The ThreeE-ComCenter and FourE-ComCenter are currently under construction and are scheduled for completion in 2018 and 2020, respectively.

SM Prime’s Hotels and Convention Centers revenues posted a 32% growth to PHP 3.2 billion from PHP 2.4 billion in 2016. Operating income expanded 8% to PHP 549.5 million from PHP 507.7 million. Overall revenue growth is attributed to improvement in occupancy rates and the opening of Park Inn Clark in December 2015 and Conrad Manila in June 2016.

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.

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.

SM Prime Holdings won three awards in the 6th Asian Excellence Awards 2016

Pasay City, Philippines, 2016-Jun-23 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, garnered three awards in the 6th Asian Excellence Awards 2016 organized by Corporate Governance Asia, a Hong Kong-based publication.

SM Prime President Hans Sy and Executive Vice President Jeffrey Lim were recognized as Asia’s Best Chief Executive Officer (Investor Relations) and Asia’s Best Chief Finance Officer (Investor Relations), respectively. On top of these prestigious awards, SM Prime was cited as the Best Investor Relations Company in the country.

The awards are testaments to SM Prime’s commitment to provide timely updates and current information to keep the public, the government, analysts, retail and institutional investors fully informed. “On behalf of our Chairman, Mr. Henry Sy, Jr., our President, Mr. Hans Sy and SM Prime team, we are honored to receive these recognition from Corporate Governance Asia. The awards reflect SM Prime’s commitment to achieve the highest standards of corporate governance,” SM Prime EVP Jeffrey Lim said.

The 6th Asian Excellence Awards recognizes companies in various categories including investor relations.

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

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(From Left to Right) SM Prime Executive Vice President Jeffrey Lim; Corporate Governance Asia Publisher and Managing Director Aldrin Monsod
(From Left to Right) SM Prime Executive Vice President Jeffrey Lim; Corporate Governance Asia Publisher and Managing Director Aldrin Monsod

Source: SM

SM Prime Holdings to earmark PHP60 billion annually for the next three years to sustain its developmental goals

Pasay City, Philippines, 2016-Apr-13 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, will earmark at least PHP60 billion annually for the next three years to sustain its developmental goals.

“SM Prime’s expansion program for the malls remains focused on the provinces which present major opportunities for higher growth and where many areas remain unserved. In the housing sector, we will continue to serve the Metro Manila area but will slowly move towards the provincial areas in the medium term. The emergence of the Philippine economy will allow us to be of greater service to as many communities as we could possibly reach,” SM Prime President Hans T. Sy said.

The company is slated to open five new malls in the Philippines this year. These are SM City Trece Martires in Cavite, SM City San Jose Del Monte in Bulacan, SM Cherry Congressional, SM City East Ortigas and SM Cherry Antipolo. In addition to the new malls, the company will be expanding SM City Calamba and SM City Naga. By end 2016, SM Prime will have 61 malls in the Philippines and six malls in China with an estimated combined gross floor area (GFA) of 8.6 million sqm.

Over the past three decades, SM malls have become more than just a shopping experience for the Filipinos. These have become the destination malls that create a whole new experience. This year, SM Prime will also open the Galleon Museum in the MoA Complex, which will bring to life the country’s rich Manila – Acapulco, Mexico trade heritage.

In residential development, SM Prime, through SM Development Corporation (SMDC), 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 (MoA) Complex. SM Prime also intends to gradually enter the economic housing market by launching new mixed-use developments in Cabanatuan, Pampanga and Cavite in the second half of this year.

The Commercial Properties Group of SM Prime will sustain the growth momentum and increasing demand for modern and innovative office buildings from the Business Process Outsourcing (BPO) companies. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2018 and 2019, respectively. When completed, these office buildings will add 236,000 sqm (GFA) and become the newest architectural landmarks in the MoA complex.

SM Prime’s hotel group will open the 347-room Conrad Manila in the second half which will  further enhance the value and foot traffic of Mall of Asia (MoA) Complex. Conrad Manila is the first 6-star hotel of the Hilton hotel brand in the country. This is the first certified U.S. Green Building Council’s LEED® in the MoA Complex. Conrad Manila is inspired by the world-class sunset of the Manila bay, envisioned as a floating vessel that cruises on a stylish urban resort atmosphere, perched atop an upscale lifestyle mall called S’Maison.

During its Annual Stockholders’ Meeting held today, SM Prime declared a cash dividend of twenty-three (P0.23) centavos per share amounting to P6.64 billion in favor of all stockholders of record as of April 29, 2016 and payable on May 12, 2016. This is equivalent to 35% of last year’s Philippine Net Income, excluding one-time gain on marketable securities. On the same event, SM Prime shareholders elected Executive Vice President Jeffrey Lim as the newest member of its Board of Directors.

SM Prime recognizes the value of good governance in the operation of its business, and continues to foster its culture of good corporate governance through the continued review and development of its policies and programs.

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.