PHILIPPINES: SM Prime Holdings to open its newest mall in Bulacan on Friday, December 1

PHILIPPINES: SM Prime Holdings to open its newest mall in Bulacan on Friday, December 1

 

Pasay City, Philippines, 2017-Dec-01 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, continues to expand in Northern Luzon as it sets to open its newest mall in Bulacan, SM Center Pulilan, this Friday, December 1. Serving as the company’s 66th mall in the Philippines, this latest mall-destination will add 27,000 square meters (sqm) in gross floor area (GFA) bringing SM Prime’s total GFA to 8.0 million sqm in the country.

Opening with 80% of space lease-awarded, SM Center Pulilan will have three-level retail and dining floors including some of the well-loved SM brands such as SM Hypermarket, Watsons, Ace Hardware, SM Appliance, Simply Shoes, Miniso, Surplus and BDO.

“The opening of SM Center Pulilan is our follow-through to the success of our first three malls in Bulacan – SM City Marilao, SM City Baliwag and SM City San Jose Del Monte. The notable development and growth of this province gives us more reasons to keep on expanding in Bulacan while continuously providing utmost malling experience and convenience to more Bulaceños,” SM Prime President Jeffrey C. Lim said.

SM Center Pulilan, which is situated along Plaridel-Pulilan Diversion Road, will boast with invigorating colors and style that cater to the flourishing lifestyle of the locals and progressing economy of Bulacan.
This year, SM Prime has already launched five new malls namely SM CDO Downtown Premier in Cagayan de Oro, S Maison at Conrad Manila in Pasay City, SM Cherry Antipolo in Rizal, SM City Puerto Princesa in Palawan and SM Center Tuguegarao Downtown in Cagayan.

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.

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PHILIPPINES: SM Prime Holdings recorded a 16% net income growth in the Q3 2017 to PHP5.66 billion

Pasay City, Philippines, 2017-Nov-06 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company recorded a 16% net income growth in the third quarter of the year to PHP5.66 billion from PHP4.86 billion in the same period last year. This led to a 15% increase in net income in the first nine months of 2017 to PHP20.05 billion from PHP17.45 billion of last year. SM Prime’s consolidated revenue posted a 12% increase to PHP64.69 billion from PHP57.78 billion, while overall operating income grew by 16% to PHP30.14 billion from PHP25.87 billion in the same period under review. The growth was due to additional rental revenues from mall expansions, consistent improvement in same-mall-sales and higher contribution from residential sales.

“SM Prime’s performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market. The timely expansion of our malls and launches of our residential projects in the provinces are positively contributing to the strong performance of our Company. Given all these, we remain optimistic that we are on track to meet our growth target this year,” SM Prime President Jeffrey C. Lim said.

Mall Operations
In the first nine months of 2017, mall revenues posted a 10% growth to PHP38.58 billion from PHP35.07 billion last year. The malls operation contributed 60% of the consolidated revenues. Mall rentals went up by 10% to PHP32.83 billion from PHP29.74 billion, primarily due to the expansions and new malls that opened in 2016 and 2017; while the same-mall-sales sustained its 7% growth. Cinema and event ticket sales slightly dropped by 3% to PHP3.34 billion from PHP3.44 billion due to fewer blockbuster movies; whereas revenues from amusement and merchandise sales surged by 26% to PHP2.40 billion from PHP1.90 billion in the same period being reviewed. The consolidated mall operating income improved by 12% to PHP21.38 billion from PHP19.14 billion and operating margin was maintained at 55% in the same period.

Currently, SM Prime has 65 shopping malls in the Philippines and seven in China with a GFA of 8.0 million sqm and 1.3 million sqm, respectively. The company will open two new malls before the year-ends, namely SM Center Lemery in Batangas and SM Center Pulilan in Bulacan, which will bring our provincial malls to 44 from 38 in 2016.

Residential Development
Residential group’s revenues, which accounts for 32% of the consolidated revenues, expanded by 10% to PHP20.50 billion from PHP18.66 billion. The increase in sales take-up of ready-for-occupancy (RFO) units and construction accomplishments of SM Development Corporation (SMDC) drove the revenues higher. These revenues mostly came from Shore 2 Residences in Pasay City, Air Residences in Makati City, Fame Residences in Mandaluyong City, Trees Residences in Quezon City, Grass Residences in Quezon City and S Residences in Pasay City. Consolidated costs of real estate grew by 7% to PHP10.31 billion from PHP9.63 billion due to higher recognized real estate sales, while operating income grew by 20% to PHP6.17 billion from PHP5.13 billion.

Reservation sales increased by 18% to PHP42.08 billion from PHP35.52 billion, while unit sales increased by 3% bringing it to 12,963 units from 12,579 units in the same period under review.

Other Businesses
The rest of SM Prime’s businesses, which account for 8% of the consolidated revenues, registered revenue growth of 39% to PHP5.76 billion in the first nine months of the year from PHP4.13 billion last year. Operating income increased by 45% to PHP2.71 billion from PHP1.87 billion, while operating income margin improved by 47% from 45% in the same period being reviewed. The growth came from rental revenues of FiveE-comCenter and Conrad Manila, which are launched in November 2015 and June 2016, respectively.

To date, SM Prime has six office buildings with a combined GFA of 383,000 sqm. ThreeE-Com and FourE-Com Centers in the Mall of Asia Complex are expected to add an estimated GFA of 320,000 sqm in the Company’s office portfolio once completed in 2018 and 2020, respectively. SM Prime has six hotels with over 1,500 rooms, four convention centers and three trade halls in its portfolio.

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.

PHILIPPINES: SM Prime Holdings opens its first premier mall in Palawan — SM City Puerto Princesa

PHILIPPINES: SM Prime Holdings opens its first premier mall in Palawan — SM City Puerto Princesa

Pasay City, Philippines, 2017-Sep-15 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, continues to expand in the provincial cities of the Philippines as it opens its first premier mall in the largest province in the country, SM City Puerto Princesa in Palawan, on September 15, Friday. This new mall will add 54,000 square meters (sqm) in gross floor area (GFA), bringing the company’s total retail space in the Philippines to 7.9 million sqm.

Built in one of the fastest growing cities in the country, SM City Puerto Princesa is strategically located at the heart of Puerto Princesa City. Its unique identity topped with lush landscaping is positioned to conform to its resort-style complex.

“We take pride in opening the 64th mall of SM Prime in one of the most sought-after island destinations in the world. We expect SM City Puerto Princesa to add new dynamics and opportunities to the thriving province of Palawan highlighted by SM’s pursuit of new and unique malling experience,” SM Prime President Jeffrey C. Lim said.

Set to open with 80% of space lease-awarded, SM City Puerto Princesa will have three-level retail and dining floors that will house around 180 favored food and retail shops including The SM Store, SM Supermarket, BDO, Sports Central, Surplus Shop, Cyberzone, Watsons, SM Appliance, Ace Hardware, a traveler’s lounge and other homegrown brands.

Aside from that, Palaweño moviegoers will now have a more satisfying and exciting cinema experience with SM City Puerto Princesa’s three 158-seater SM Digital Cinema, and two 48-seater Director’s Club Cinema.

Designed to complement the tropical vibe of the island, SM City Puerto Princesa is set to be a cost-efficient and energy saving building, in line with SM Prime’s commitment on sustainable future and disaster risk reduction.

This year, SM Prime has already launched SM CDO Downtown Premier in Cagayan de Oro, S Maison at Conrad Manila in Pasay City and SM Cherry Antipolo in Rizal; and still scheduled to open is SM Center Tuguegarao Downtown in Cagayan Valley.

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.
Tel. no.: +632 862 7940
SOURCE: SM Investments Corporation

PHILIPPINES: SM Prime Holdings to open new SM Cherry Antipolo, Rizal on Friday, June 30

Artist’s Perspective of SM Cherry Antipolo

Pasay City, Philippines, 2017-Jun-30 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, will open SM Cherry Antipolo on Friday, June 30. SM Cherry Antipolo is the 63rd mall of SM Prime in the country, which is situated along the bustling Marcos Highway, and spans 27,000 square meters (sqm) of gross floor area (GFA) bringing the total retail footprint to 9.1 million sqm in the Philippines.

“SM Cherry Antipolo is the third Cherry Foodarama outlet in the country that SM Prime re-opens to public after acquiring the brand. The opening of this mall provides the company a stronger foothold in the eastern part of Metro Manila along with our three other malls in Rizal province, the SM City Masinag, SM City Taytay and SM Center Angono,” SM Prime President Jeffrey C. Lim said.

SM Cherry Antipolo is set to expand the presence of SM Group in the Rizal province by bringing SM Supermarket, Ace Hardware, Watsons, and BDO. This three-level mall will open with 55% of its space leased awarded and will feature an enhanced shopping environment for the community, offering expanded services beyond the traditional grocery experience. This mall will also have a Skygarden on the second level, which will share a comfortable and inviting outdoor experience with covered dining areas and walking paths.

This year, SM Prime has already launched SM CDO Downtown Premier last May 12 and S Maison at Conrad Manila last June 14; and still scheduled to open in Palawan is the SM City Puerto Princesa.

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

###

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 Investments Corporation

SM Prime Holdings recognized as one of the 2016 Top Ten Successful ASEAN Countries Entering China

SM Prime Holdings recognized as one of the 2016 Top Ten Successful ASEAN Countries Entering China

 

Pasay City, Philippines, 2017-Jan-19 — /EPR Retail News/ — The year 2016 proved to be an auspicious one for Philippine brand SM Prime Holdings Co. Ltd. (SMPH), operator of SM Supermalls, which led to a recognition as one of the 2016 Top Ten Successful ASEAN Enterprises Entering China. The award was given by the China-ASEAN Business Council (CABC) during ceremonies held at Four Seasons Hotel in Beijing, China.

Present during the prestigious event were hundreds of top business and government officials from various organizations of China and member states of ASEAN. Representing SMPH were Senior Vice President Steven Tan and AVP Marketing of China Vivien Cheng.

“We receive this award with great honor not only for the company, but for the Philippines,” said Steven Tan. “This shows the tremendous cooperation among ASEAN members, which could only augur well for the future of the entire region.”

SM’s CABC award recognizes the company’s various investments and contributions to the industry. Currently, it has 7 malls in China, which include Xiamen, Jinjiang, Chengdu, Suzhou, Chongqing, Zibo, and Tianjin. SM City Tianjin is touted as one of the world’s biggest shopping malls in the world today. SM’s successful presence in China has yielded several awards and recognitions from various organizations, collecting over 10 awards in 2016 alone.

The CABC serves as a conduit between China and ASEAN trade and economic relations and development. The body is composed of China Council for the Promotion of International Trade (CCPIT), ASEAN Chamber of Commerce and Industry (ACCI), national business leaders, entrepreneurs and experts from ASEAN members. It is supported by the Ministry of Commerce of China and the ASEAN Ambassadors to China, among others.

Source: SM Investments Corporation

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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.

Philippines: SM Prime Holdings registered 12% growth in its core net income during first half of 2016

Pasay City, Philippines, 2016-Aug-01 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, registered a 12% growth in its core net income to PHP 12.6 billion from PHP 11.2 billion. This was supported by a 9% increase in consolidated revenues to PHP 39.2 billion from PHP 35.9 billion in the first half of 2016.

“SM Prime’s integrated development program in the Philippines that is geared more towards provincial expansion sustained its financial performance in the first half of the year. SM Prime is well-positioned for higher growth given that the Philippines’ economic upturn is starting to spread in the provinces,” SM Prime President Hans T. Sy, said.

In the first half of 2016, mall revenues achieved a 9% increase to PHP 23.6 billion from PHP 21.7 billion of the previous year. It contributed 60% to SM Prime’s consolidated revenues, of which, 85% is accounted for rentals. Mall revenues were driven by the 7% growth in same-malls-sales and contribution from the new retail space that were added in the past two years. Operating income of the malls increased by 9% to PHP 13.2 billion, maintaining its last year’s operating income margin of 56%. Moreover, cinema and event ticket sales, accounted for 10% of malls’ consolidated revenues, reached PHP 2.4 billion in the first half of the year, almost same level from last year.

The mall operations in China, which accounted for 9% of mall revenues, generated PHP 2.1 billion, up by 8% from PHP1.9 billion in the first half of 2016. Operating income, likewise, improved by 11% to PHP 1.1bn. The China malls posted an operating income margin of 51% from 50% of the same period last year.

Currently, SM Prime has a total of 58 malls in the Philippines and six in China with a total gross floor area (GFA) of 8.5 million sqm. The company is scheduled to open two more malls this year namely Cherry SM Congressional in Quezon City and SM City East Ortigas in Pasig City. SM Prime is also expanding SM Center Molino in Cavite and SM City San Pablo in Laguna this year.

SM Prime’s residential group, which accounted for 34% of consolidated revenues, posted a 6% increase to PHP 13.2 billion from PHP 12.5 billion of the same period last year. Operating income grew by 5% to PHP 3.9 billion from PHP 3.7 billion. The increase is primarily driven by the higher construction accomplishments of SM Development Corporation (SMDC) projects launched from 2013 to 2015 such as Princeton Residences, M Place Residences, Mezza II Residences and Jazz Residences in the cities of Quezon and Makati. Meanwhile, consolidated costs of real estate increased by only 4% to PHP 7.0 billion as the group was able to contained construction costs. This resulted to further improvement of gross profit margin to 47% from 46%, while net income margin is maintained at 24% from the same period last year.

Reservation sales bounced back in the second quarter posting PHP 14.5b billion from PHP 8.1 billion in the previous quarter. This allowed SMDC to post a 20% growth in sales value in the first six months of 2016 to PHP 22.6 billion from PHP 18.8 billion. The housing group reported an 18% increase to 8,091 unit sales from 6,868 units of the same period last year. These were largely generated from recently launched Shore 2 Residences, Coast Residences and S Residences, all in Pasay City. For the rest of the year, SM Prime plans to launch additional 6,000 to 8,000 units in the cities of Quezon, Pasay and Tagaytay, and economic housing in the provinces of Bulacan, Cavite and Cabanatuan.

The Commercial Properties Group, which contributed 3% of SM Prime’s consolidated revenues, recorded a 51% increase of PHP 1.1 billion. Operating income doubled to PHP 762.8 million, translating a 68% operating income margin in the period being reviewed. The significant growth is boosted by the opening of SM Cyber West in Quezon City and Five E-Com Center in Pasay City, with a combined GFA of 171,000 sqm. These office buildings have an occupancy rate of 100% and 99% respectively.

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. ThreeE-Com and FourE-Com Centers, on the other hand, are under construction and scheduled for completion in 2017 and 2018, respectively.

The Hotels and Convention Centers business opened the 154-room Park Inn Clark in Pampanga last December. SM Prime also launched the 347-room Conrad Manila last June, situated atop of S’ Maison – a two-level high-end retail podium in Pasay City.

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.

Philippines: SM Prime Holdings issues PHP10 billion fixed rate bonds due on 2026

Makati, Philippines, 2016-Aug-01 — /EPR Retail News/ —SM Prime Holdings,Inc. (SM Prime) marked its 3rd listing of retail bonds with its issuance of PHP10 billion fixed rate bonds due on 2026.

With SM Prime’s bond issuance, the total listed amount of the SM Group on PDEx shall be PHP84.83 billion, representing 14.47% of the total corporate fixed-income issues in the organized secondary market.

For this series, SM Prime has set the interest rate for its Peso-denominated Series F, 10-year retail bonds at 4.2005% p.a. with an aggregate principal amount of PHP 10 billion. This is part of the 3-year shelf registration with an aggregate amount of PHP 60 billion.

PDS Group President & CEO Cesar B. Crisol said: “PDS Group has long admired SM Prime’s plans and efforts to expand and develop the country’s up and coming regional cities. And as SM Prime has been executing this strategy for many years now, one may easily cite the firm as being one of earliest advocates of “inclusive economic growth.”

The Directors and Officers of SM Prime who attended the event are SMPH President Hans T. Sy, Executive Vice President Jeffrey C. Lim, Chief Finance Officer John C. Ong, Finance Vice President Teresa Cecilia Reyes-Agsalud, Investor Relations Vice President Alexander D. Pomento, Treasury Assistant Vice President Maricel A. Ranola, and SM Investments Corporation Treasury Senior Vice President Marcelo C. Fernando Jr.

Also present are representatives from the Joint Issue Managers, Joint Bookrunners, and Joint Lead Underwriters, including BDO Capital and Investment Corporation Senior Vice President Gabriel U. Lim, China Banking Corporation First Vice President Virgilio O. Chua, First Metro Investment Corporation Senior Executive Vice President Rabboni Francis B. Arjonillo, and Bank of the Philippine Islands Executive Vice President Dennis M. Montecillo.

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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(Left to right) SM Prime’s VP for Investor Relations Alexander D.Pomento, Chief Finance Officer John C. Ong, Executive Vice President Jeffrey C.Lim, VP for Finance Teresa Cecilia Reyes-Agsalud, AVP for Treasury Maricel A. Ranola, President Hans T. Sy, and SM Investments SVP for Treasury Marcelo C. Fernando Jr.
(Left to right) SM Prime’s VP for Investor Relations Alexander D.Pomento, Chief Finance Officer John C. Ong, Executive Vice President Jeffrey C.Lim, VP for Finance Teresa Cecilia Reyes-Agsalud, AVP for Treasury Maricel A. Ranola, President Hans T. Sy, and SM Investments SVP for Treasury Marcelo C. Fernando Jr.

 

Source: SM Prime Holdings,Inc.

Philippines: SM Prime Holdings sets the interest rate for its Php10.0 billion 10-year retail bonds at 4.2005% p.a.

Pasay City, Philippines, 2016-Jul-13 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime) has set the interest rate for its Peso-denominated Series F, 10-year retail bonds at 4.2005% p.a. SM Prime will issue an aggregate principal amount of Php 10.0 billion of the Series F bonds, which will be offered to investors through underwriters from July 13 to 19, 2016. The retail bonds will be issued on July 26, 2016. According to the underwriters, SM Prime received a strong demand for the retail bonds.

The SM Prime bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk, and denotes that the Issuer’s repayment capacity is extremely strong. This series of SM Prime bonds is the third offering of Peso-denominated retail bonds to the public.

“The retail bond to be issued will sustain SM Prime’s development roadmap, which is geared towards provincial expansions mostly allotted on malls and offices developments. We remain optimistic on the huge growth potential in the provinces where large areas remain unserved.” SM Prime President Hans T. Sy said.

The SM Prime bonds’ joint issue managers, joint lead underwriters and joint book runners are BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation and First Metro Investment Corporation. East West Banking Corporation, PNB Capital and Investment Corporation and United Coconut Planters Bank are participating underwriters for the bond issue.

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

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

Philippines: SM Prime Holdings to offer to the public up to Php60 billion worth of Bonds

Pasay City, Philippines, 2016-May-17 — /EPR Retail News/ — SM Prime Holdings, Inc. (SMPH) announced today that its Board of Directors approved the offering to the public of up to Php60 billion worth of Bonds (the ”Bonds”). The Bonds will be filed under a shelf registration to be issued for a period of three (3) years, with an initial offering of up to Php5 billion with an over subscription option of up to Php5 billion worth of Fixed rate bonds, with maturity of 10 years (the “Series “F” Bonds”).

The Board of Directors also authorized the management to negotiate and finalize the terms and conditions, including pricing, tenor and any increase in issuance amount, and execute any and all documents necessary, to implement the retail bond issue.

-End-

For further information, please contact:

Ms. Teresa Cecilia H. Reyes
Vice President, Finance
SM Prime Holdings, Inc.
E-mail: teresa.cecilia.reyes@smprime.com
Tel. no.: 831.1000 loc. 7820

Philippines: SM Prime Holdings reports core net income growth of 12% in the first quarter of 2016

Pasay City, Philippines, 2016-May-02 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a core net income growth of 12% in the first quarter of 2016 to PHP5.8 billion while consolidated revenues rose 10% to PHP18.2 billion.

“SM Prime’s massive expansion last year propelled our performance this quarter. Our strong balance sheet coupled with consistent recurring revenue and income should allow us to pursue our growth plans this year and in the medium term,” SM Prime President Hans T. Sy, said.

In the first quarter, mall revenues surged 11% to PHP11.0 billion from PHP9.9 billion in the previous year. Mall revenue alone accounted to 60% of SM Prime’s consolidated revenue, for which 85% of it comes from rental income. Growth was largely driven by new malls and expansion of existing malls in 2015. These are SM Seaside City Cebu, SM City Cabanatuan, SM City San Mateo, SM Center Sangandaan and SM City Iloilo with a total gross floor area (GFA) of 738,000 square meters (sqm). Excluding the new malls and expansions, same-store growth averaged 7%.

To date, SM Prime has a total of 57 Malls in the Philippines and six in China with total retail space of 8.4 million sqm. This includes the newly opened SM City San Jose del Monte in Bulacan, with a GFA of 101,000 sqm. The company is set to open four more malls this year namely, SM City Trece Martires, SM City East Ortigas, Cherry SM Congressional and Cherry SM Antipolo. SM Prime also intends to expand its existing malls namely SM City Calamba and SM City Naga.

SM Prime’s residential group, which contributed 32% of consolidated revenues, posted revenues of PHP5.8 billion in the period being reviewed, up 5%. The increase can be traced by the higher construction accomplishments of SM Development Corporation (SMDC) projects launched in 2013 to 2015. These are Grass Residences, Shore Residences and Air Residences in the cities of Quezon, Pasay and Makati. This was also supported by the increase in sales take-up in M Place Residences, Field Residences and Jazz Residences in the cities of Quezon, Parañaque, and Makati.

Consolidated costs of real estate inched up by 2% to PHP2.9 billion mainly due to higher revenues recognized in real estate sales. This generated a higher gross profit margin of 47% from 46% in the same period last year. Net income margin likewise rose to 24% from 23%.

SM Prime currently has twenty eight residential projects in the market in Metro Manila and Tagaytay. SM Prime has already launched two new projects and an expansion of existing development equivalent to 4,000 units in Las Pinas, Bicutan and along Roxas Boulevard. For the rest of the year, SM Prime is still set to launch an additional 10,000 to 12,000 units located in the Mall of Asia Complex, Tagaytay, Quezon City, Bulacan, Cavite and Cabanatuan.

The Commercial Properties Group, accounted for 5% of consolidated revenues, soared 16% to PHP 1 billion in revenues. The growth was complemented by the opening of SM Cyber West and Five E-Com Center, with a combined GFA of 171,000 sqm. These office buildings currently enjoy an average occupancy rate of 99%. The Commercial Properties Group presently 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.

The hotels and convention centers business grew by 22% in the first quarter of 2016 to PHP 617 million in terms of revenue. The growth was propelled by an improvement in the average room and occupancy rates which was supplemented by the opening of 154-room Park Inn Clark in Pampanga. SM Prime will unveil the 347-room Conrad Manila in second half 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.

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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

PHILIPPINES: SM Prime Holdings opens SM City San Jose Del Monte, Bulacan

Pasay City, Philippines, 2016-May-02 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the country’s largest integrated property company, is opening SM City San Jose Del Monte on April 29, 2016. This is SM Prime’s 57th mall in the Philippines and the third in the province of Bulacan – after SM City Baliwag and SM City Marilao.

This newest retail and dining destination will add 101,000 square meters (sqm) in gross floor area (GFA) to the floorplate, which will bring SM Prime’s total retail space to 7.4 million sqm, the largest footprint in the country.

“We continue to expand in the provincial areas as we remain optimistic about their huge potential for growth. The opening of SM City San Jose Del Monte in Bulacan is a testament to this strategic direction as we remain steadfast in developing premier destinations around the country,” SM Prime President Hans T. Sy said.

SM City San Jose Del Monte is strategically located along Quirino Highway in Bulacan, which is connected to the cities of Quezon and North Caloocan. San Jose Del Monte is a second-tier city with predominantly middle income households, of which, 62% have family members that are Overseas Filipino Workers (OFW). The city contributes to one of the fastest growing residential and commercial hubs in the Northern Gateway of Metro Manila, covering 59 barangays and a population of almost 500,000 based on the 2010 census.

SM City San Jose Del Monte opens with 70% of space lease-awarded occupying its three floors with retail stores, dining outlets, recreation and entertainment facilities, and service centers topped with commendable architectural design making it the newest vibrant urban hub in the north of Metro Manila. The prime spaces are allocated to local and international retail brands, well-loved food outlets and anchor tenants such as THE SM STORE, SM Supermarket, SM Appliance Center, Ace Hardware, BDO, Surplus, Watsons, and SM Cinema with four state-of-the-art cinemas giving a total of 1,026 cinema seats. A multilevel basement parking, with 912 parking slots, is also provided for mall-goers’ convenience.

By the end of 2016, SM Prime is targeting to have 61 malls in the Philippines and six in China with an estimated combined GFA of 8.6 million sqm.

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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Architect’s Perspective of SM City San Jose Del Monte in Bulacan

Architect’s Perspective of SM City San Jose Del Monte in Bulacan

Philippines: SM Prime Holdings reported recurring net income growth of 14% in 2015

Pasay City, Philippines, 2016-Feb-24 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a recurring net income growth of 14% in 2015 to PHP20.9 billion on the back of an 8% increase in consolidated revenues to PHP71.5 billion in the same period.  On a consolidated level, net income increased 54% to PHP28.3 billion, inclusive of the PHP7.4 billion one-time trading gains on marketable securities booked in the first quarter of the year.

“SM Prime sustained its overall net income growth in 2015 as the malls’ overall operations led the performance of the group. This is a reflection of the overall expansion of the economy that continues to be driven by the 6.2% growth in household consumption. We believe we could sustain this growth in 2016 as we continue to focus on enhancing the synergies across our core business units as an integrated property developer,” SM Prime President Hans T. Sy, said.
Rental revenues from malls and commercial spaces, which accounted for 57% of the consolidated revenues, surged at 12% to PHP40.7 billion from PHP36.5 billion in the previous year. The strong growth in rental revenue was sustained by SM Prime’s expansion across all its business portfolio since 2013. Growth can be traced to new malls such as SM Aura Premier, SM City BF Parañaque, Mega Fashion Hall in SM Megamall, SM City Cauayan in Isabela, SM Center Angono in Rizal, SM City San Mateo in Rizal, and the expansion of SM City Bacolod, all of which contributed an additional total gross floor area of 728,000 square meters. Rental growth was also complemented by the opening of office buildings SM Cyberwest in Quezon City, and FiveE-comCenter in Pasay City, both fully occupied. Combined, these office spaces added GFA of 171,000 sqm. Excluding the new malls and expansions, same-store rental growth continued to exhibit 7% increase.
SM Prime’s real estate sales, accounted for 31% of consolidated revenues, sustained its revenues at PHP22.2 billion in 2015. The flat performance of revenues was primarily due to lower revenue recognition from the almost completed housing projects that were launched in 2011 and 2012.  On the other hand, the recently launched projects continue to enjoy brisk sales, with SM Development Corp. (SMDC) posting higher reservation sales by 12% year-on-year to 14,390 units in 2015. As a result SMDC, which contributes 93% of the housing group’s real estate sales, achieved a 15% increment in sales value worth PHP39.8 billion from PHP34.6 billion last year. Reservation sales were largely generated from Shore 2 Residences, Shore Residences, Air Residences, Jazz Residences and Fame Residences and in the cities of Pasay, Makati, and Mandaluyong, respectively. For the period, housing group’s net income increased by 8% to PHP5.1 billion from PHP4.7 billion in 2014.
Consolidated costs on real estate dropped by 2% to PHP12.0 billion mainly due to the improving cost efficiencies, tighter monitoring and control of construction costs. This generated higher gross profit margin on real estate sales to 46% in 2015 from 44% in 2014. Net income margin likewise stood at 23% from 21% in the same period.
Cinema and event ticket sales, which represented 7% of consolidated revenues, recorded a 12% growth in 2015 to PHP4.8 billion. International movies continued to dominate Philippine Cinema. Other revenues, which consisted of amusement income from rides, bowling and ice skating operations, merchandise sales from snack-bars and sale of food and beverages in hotels stood at PHP3.8 billion, up by 14% from PHP3.3 billion. The growth exhibited was mainly driven by the opening of Sky Ranch Pampanga, improvement in hotels’ food and beverages income as well as an increase in sponsorship income.
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 which opened November 27, October 23, October 13, October 9, May 15 and April 24, respectively. 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 Conrad Hotel Manila is expected to open in the second half 2016. The 347-room hotel will further enhance the value of the properties within the whole Mall of Asia (MoA) Complex, given that this will be the first 6 star hotel in the Pasay City area.
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.
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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

Philippines: SM Prime Holdings hailed the Best Real Estate Developer (Retail) for the 3rd time by Euromoney Magazine’s 11th Annual Real Estate Survey

PASAY CITY, PHILIPPINES, 2015-12-29 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, was hailed as the Best Real Estate Developer (Retail) in the Philippines for the third time by Euromoney Magazine, last November 16. This award celebrated Philippine real estate’s robust growth in the commercial, residential, offices and mixed-use sectors powered by innovative and efficient approaches within the industry.

SM Prime was distinguished by pre-eminent international finance magazine Euromoney in its 11th Annual Real Estate Survey. The survey results were based on the peer nominations and voter participation scores of senior real estate bankers, developers, investment managers, corporate end-users and advisory firms of the Philippines in the past 12 months.

“On behalf of our Chairman, Mr. Henry Sy, Jr., our President, Mr. Hans Sy and SM Prime team, we are honored to accept this recognition. This reflects SM Prime’s commitment to continued excellence in providing innovative and sustainable property developments,” SM Prime Executive Vice President Jeffrey Lim said when he received the award.

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.

SOURCE: SM Investments Corporation

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Philippines: SM Prime Holdings hailed the Best Real Estate Developer (Retail) for the 3rd time by Euromoney Magazine’s 11th Annual Real Estate Survey

(From Left to Right) Mr. Marcus Langston, Euromoney Magazine’s Senior Manager for Asia; Mr. Jeffrey Lim, SM Prime’s Executive Vice President

Philippines: SM Prime Holdings mall business announces recent ISO 22301 certification

Pasay City, Philippines, 2015-12-17 — /EPR Retail News/ — The mall business of SM Prime Holdings, Inc. (SM Prime), the country’s largest integrated property developer, reported its recent certification by the International Organization for Standardization. The ISO 22301 certification affirms the company’s commitment to meet the needs of its stakeholders especially in times of disasters and calamities.

ISO awarded the certificate to SM Prime for establishing and applying a Business Continuity Management program for its SM Supermalls. Likewise, the certification covers the Mall of Asia Arena Annex Building, the headquarters of SM Prime in Pasay as well as SM Megamall, one of SM Prime’s largest malls in the country.

“This certification assures our stakeholders that the company will be able to respond to, recover from and continue its business after a disruptive event. For our customers, this means assuring their safety first and foremost, even as we provide access to basic necessities even at the onset of the calamity,” SM Prime President Hans T. Sy said.

The ISO certification meant going through a series of detailed audits which included internal assessments to ensure readiness for certification and an external audit on the company’s Business Continuity Management System.

“SM Prime is committed to make sure that business continuity is part of our operations especially after a calamity to provide continuous livelihood, not only to our employees, but to the employees also of our tenants, suppliers and all our stakeholders,” Sy added.

The ISO is an independent, non-governmental international organization with a membership of 162 national standard bodies. It brings together experts to share knowledge and develop voluntary, concensus-based, market relevant international standards that support innovation and provide solutions to global challenges.

The ISO 22301 certification covers the requirements for a robust business continuity management system, which will allow the company to minimise the risk associated with disruptions and to make certain that control is maintained at all times. More information about ISO 22301 can be found in this link: http://www.isoqsltd.com/iso-certification/iso-22301-business-continuity-management-certification/.

In the last few decades, SM malls have integrated disaster risk reduction into their design and operations amid worsening effects of climate change. Aside from SM Megamall, good examples of these are SM City Cabanatuan in Nueva Ecija, SM City Marikina, SM City Masinag in Antipolo, Rizal, SM BF Paranaque, SM Angono and SM San Mateo in Rizal, SM Muntinlupa in Alabang, The SM Mall of Asia in Pasay and SM Seaside City in Cebu among others.

SOURCE: SM Investments Corporation
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Philippines: SM Prime Holdings mall business announces recent ISO 22301 certification

Shown in the photo are (from left) Richard O. Regalado, Consultant, EIAN Management Consulting; John C. Ong, Chief Finance Officer, SM Prime; Myquel M. Regalado, Adviser, EIAN Management Consulting; Royston A. Cabunag, Assistant Vice President for Operations, Mall of Asia Annex Building; Femelyn Lati, General Manager, TŪV SŪD PSB Philippines; Hans T. Sy, President, SM Prime; Christian V. Mathay, AVP for Operations, SM Megamall; Eunice M. Sotto, AVP for Enterprise Risk Management, SM Prime; Anna Maria S. Garcia, President, Shopping Center Management Corp.; and Egbert T. Lim, Mall Manager, SM Megamall.

Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

Pasay City, Philippines, 2015-11-27 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens its new regional landmark, SM Seaside City Cebu, on November 27, 2015. It is SM Prime’s 56th mall in the country, and the third mall within Cebu – along with SM City Cebu and SM City Consolacion. The new destination mall provides an additional 430,000 square meters (sqm) in gross floor area (GFA), expanding SM Prime’s total retail space to 7.3 million sqm in the Philippines.

SM Seaside City Cebu, located within the SM Seaside Complex at the South Road Properties (SRP) in Cebu City, is the first of its kind in urban development in the SRP. It also promises to revolutionize the malling experience not only in Cebu, but in the whole Southern portion of the Philippines.

“We are inspired by the success of our Mall of Asia Complex in Pasay City, the first lifestyle city project or mixed-use development that offers retail, residences, offices, hotels and convention centers. We are replicating this concept of “lifestyle cities” in Cebu as we open the SM Seaside City mall. We see Metro Cebu as one of our important growth corridors in Visayas and Mindanao following our growth track in Metro Manila,” SM Prime President Hans T. Sy said.

The local communities are in for a treat as a new experience in urban living is in store with fresh lifestyle options in food, fashion, entertainment, and more. The new destination mall will open with 80% of space lease-awarded which serves as the new home to flagship stores of well-known local and international brands. It will also be the venue of unique and world-class events and entertainment. The shopping mall will have anchor tenants such as The SM STORE, SM Supermarket, Forever21, UNIQLO, Our Home, Ace Hardware, SM Appliance Center, Watson’s, The Body Shop, Kultura, BDO Unibank, and Chinabank.

SM Seaside City Cebu is the newest architectural jewel of SM Prime with its nautilus inspired design of concentric arcs from a central multi-purpose space featuring a “Seaside Tower“, a 147-meter iconic viewing tower which offers a sensational panoramic view of the entire city. A Sky Park provides a unique setting for diverse dining outlets situated in an elevated garden with soothing water features. The mall will have a skating rink, eight cinemas houses and 5,000 parking slots.

SM Seaside City Cebu is the first of many developments in the 30-hectare SM Seaside Complex. As the anchor development, it is slated to transform the city’s landscape as SM Prime builds residences, offices, an arena, a five-star hotel, and convention centers. The Complex features “The Cube”, a steel sculpture that symbolizes strength and stability of Cebuanos and its consistency reflects SM’s continued commitment to excellence.

SM Seaside City Cebu is the sixth SM Supermall to be opened this year, after SM Center Sangandaan, Cherry SM Shaw, and SM City Cabanatuan that recently opened last October 23, October 13 and October 9 respectively. To date, SM Prime has 56 malls in the Philippines and six in China with an estimated combined GFA of 8.3 million sqm.

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.

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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 Investments Corporation

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Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

Philippines: SM Prime Holdings opens its new regional landmark, SM Seaside City Cebu

SM Prime Holdings set interest rates for its Peso-denominated Series D, 5.25-year retail bonds at 4.5095%, and Series E, 10-year retail bonds at 4.7990%

Pasay City, Philippines, 2015-11-9 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, has set the interest rates for its Peso-denominated Series D, 5.25-year retail bonds at 4.5095% p.a., and Series E, 10-year retail bonds at 4.7990% p.a.

SM Prime will issue an aggregate principal amount of Php15.0 billion of the Series D and Series E retail bonds, with an option to issue an additional amount of up to Php5.0 billion. The bonds will be offered to investors through underwriters starting November 4 to 13, 2015. The retail bonds are set to be issued to the bondholders on November 25, 2015.

Proceeds of the retail bond would be mostly used to the mall expansions and refinance loans of the company. By the end of 2015, SM Prime will increase its number of malls to 55 in the Philippines with an equivalent mall footprint of 7.3 million square meter in terms of gross floor area (GFA). Next year, SM Prime will open six new malls and expand two existing mall. Combined, the additional mall space is 571,631 square meters.

“The retail bond to be issued by SM Prime will largely support funding for our mall expansion programs in the coming years. This is a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas.” SM Prime President Hans T. Sy said.

This series of SM Prime bonds due 2021 and 2025 is the second offering of Peso-denominated retail bonds to the public, subsequent to its successful maiden issue of Php20.0 billion in 5.5-, 7- and 10-year bonds in 2014. Similar to its previous bond issue, the SM Prime Series D and Series E retail bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. A rating of PRS Aaa is assigned to long-term debt securities with the smallest degree of investment risk, and denotes that SM Prime’s repayment capacity is extremely strong.

The bonds’ joint issue managers and joint bookrunners are BDO Capital & Investment Corporation, China Banking Corporation and First Metro Investment Corporation, which are also acting as joint lead underwriters together with BPI Capital Corporation, PNB Capital and Investment Corporation, United Coconut Planters Bank, SB Capital Investment Corporation, East West Banking Corporation, RCBC Capital Corporation, Land Bank of the Philippines and Philippine Commercial Capital, Inc. are participating underwriters for the bond issue.

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

Philippines: SM Prime Holdings reports 70% surge in its consolidated net income in the first nine months of 2015

Pasay City, Philippines, 2015-11-04 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, reported a 70% surge in its consolidated net income to PHP22.9 billion in the first nine months of 2015. This is inclusive of the PHP7.4 billion one-time trading gains on marketable securities booked in the first quarter of the year. On a recurring basis, net income increased by 15% to PHP15.5 billion in the same period. Recurring income growth for the third quarter was likewise at PHP4.2 billion, up 15% over the third quarter in 2014.

Consolidated revenues rose 9% to PHP52.2 billion in the first nine months. In the third quarter, revenues likewise increased 13% to PHP16.2 billion, much higher than the 8% growth posted in the first half of 2015.

“SM Prime’s expansion across all its various business portfolios since 2013 has driven its strong financial performance this year. We expect SM Prime’s growth to be sustained as we continue to increase our mall footprint by 13% this year. We are excited to launch SM Seaside Cebu later this year, a landmark project in the Visayas region. We see Metro Cebu as one of our important growth corridors following our growth track in Metro Manila,” SM Prime President Hans T. Sy said.

Rental revenues from retail and commercial spaces, which contributed 56% to the consolidated revenues, increased by 11% to PHP29.4 billion from PHP26.4 billion in the first nine months of 2015. The growth in rental revenues was mainly driven by rising contribution from the new malls and the expansion of shopping spaces in existing malls in 2013 and 2014. These include SM Aura Premier, SM City BF Parañaque, Mega Fashion Hall in SM Megamall, SM City Cauayan, SM Center Angono and the expansion of SM City Bacolod with a total gross floor area of 652,000 square meters. Rental growth also came from the opening of the FiveE-comCenter, with a GFA of almost 130,000 sqm at Mall of Asia Complex with 97% of the space leased awarded. Meanwhile, same-store rental growth remained at 7%, maintaining the growth posted since 2012.

On the other hand, SM Prime’s real estate sales, which accounts for 32% of the consolidated revenues, grew by 4% to PHP16.6 billion from PHP 16.0 billion in the same period last year.

The improvement in real estate sales was largely attributed to the increase in the sales take-up and higher construction accomplishment of SMDC projects launched in 2010 to 2013 namely Jazz Residences in Makati City, Wind Residences in Tagaytay, Green Residences in Manila, Breeze Residences in Manila, Grace Residences in Taguig, Shore Residences in Pasay, and Trees Residences in Quezon City. For its part, SMDC alone posted a net income increase of 23% to PHP3.8 billion during the nine-month period from PHP3.1 billion.

Consolidated costs on real estate dropped by 1% to PHP9.0 billion mainly due to the improving cost efficiencies, tighter monitoring and control of construction costs. This reflected higher gross profit margin on real estate sales to 46% in first nine months 2015 from 43% in 2014. Net income margin likewise rose to 22% from 20% in the same period.

The housing group’s reservation sales was up by 19% year-on-year to 10,297 units in the first nine months of 2015 reflecting a 22% increase in value worth PHP28.4 billion from PHP23.3 billion in the same period last year. Reservation sales were largely generated from Shore 2 Residences, Shore Residences, Air Residences, Fame Residences and Grace Residences in Pasay, Makati, Mandaluyong and Taguig City, respectively.

Meanwhile, cinema and event ticket sales, which accounted for 6.5% of consolidated revenues, registered a growth of 4% in the first nine months to PHP3.4 billion.

Other revenues, composed of amusement income from rides, bowling and ice skating operations, merchandise sales from snack-bars and sale of food and beverages in hotels stood at PHP2.8 billion, up 30% from PHP2.1 billion.

In the first nine months of the 2015, SM Prime has a total of 52 Malls in the Philippines including SM Megacenter Cabanatuan in Nueva Ecija and SM City San Mateo in Rizal which opened last April 24 and May 15, respectively. 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 7.6 million sqm.

SM Prime recently opened SM City Cabanatuan, with a GFA of 154,020 sqm, and SM Center Sangandaan, with GFA of 38,622 sqm, last October 9 and October 23, respectively. For the rest of the year, SM Prime is set to open its regional landmark, SM Seaside City Cebu, with a GFA of approximately 461,000 sqm, on November 27, 2015. The company is also expanding two existing malls, SM City Lipa in Batangas and SM City Iloilo. Combined, these new and expanded malls will have a total GFA of almost 719,000 sqm.

By the end of 2015, SM Prime will have 55 malls in the Philippines and six malls in China with an estimated combined GFA of 8.3 million sqm.

SM Prime currently has 27 residential projects in the market, 25 of which are in Metro Manila and two in Tagaytay. For 2015, SM Development Corporation will launch about 12,000 to 15,000 units in the cities of Taguig, Quezon, Mandaluyong, Tagaytay, Las Piñas, Parañaque and Pasay at the Mall of Asia Complex.

Meanwhile, the Commercial Properties Group has five office buildings with an estimated gross floor area of 318,000 square meters. FiveE-comCenter will be formally launched this month. Currently, Three E-Com Center is under construction and scheduled for opening in 2018. For hotels and convention centers, Park Inn by Radisson Clark in Pampanga is expected to open in December 2015 while Conrad Manila in the Mall of Asia Complex in Pasay City is expected to open by first half of 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.

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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 Investments Corporation

 

SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

Pasay City, Philippines, 2015-10-26 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens today SM Center Sangandaan, October 23, 2015.  It is SM Prime’s 55th mall in the Philippines, and first mall in the populous City of Caloocan, one of the16 cities within Metro Manila.  The new mall provides an additional 38,622 square meters (sqm) in gross floor area (GFA), giving SM Prime a total retail space of 6,825,206 sqm, the largest footprint in the country.

SM Center Sangandaan, strategically located  along the busy intersection of Samson Road and A. Mabini Street Sangandaan, Caloocan City, will give SM Prime access to the northern tip of Metro Manila, bringing a unique shopping experience closer to the highly dense cities of Malabon, Navotas and Caloocan.

“SM Center Sangandaan reflects SM Prime’s commitment to be part of the growth across communities. We are very pleased to open our first mall in Caloocan City which is a testament to the fact that Metro Manila is far from being saturated by modern retail facilities,” SM Prime President Hans T. Sy said.

The mall opens its doors to more than one and a half million Filipinos with 90% of the space lease awarded to various tenants. SM Center Sangandaan will have anchor tenants such as SM Supermarket, SM Appliance Center, SM Cinema, Ace Hardware, BDO, and Watsons.

There will be a total of three levels of prime spaces which includes four cinema theaters with a total seating capacity of 824 and 493 parking slots.The mall’s facade gets its inspiration from different shades of blue, gray and white, giving the exterior a quirky geometric visual design. The main interior features a high glass ceiling, complemented by white walls which maximizes daylight and adds futher dimension to the mall. SM Center Sangandaan was delicately planned around a simple yet efficient design that allows shoppers to easily stroll around and provides clear line-of-sight to all shops on all levels at the same time.

To date, SM Center Sangandaan is the fifth SM mall to be opened this year, after Cherry SM in Shaw Boulevard with a GFA of 24,165 sqm and SM City Cabanatuan. These malls recently opened last October 13 and October 9, respectively. The highly anticipated, SM Seaside City Cebu, is scheduled to open on November 27, 2015.

By the end of 2015, SM Prime will have 56 malls in the Philippines and six in China with an estimated combined GFA of 8,301,267 million sqm.

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.

SOURCE: SM Investments Corporation

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SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

SM Prime Holdings, Inc. opens its 55th mall in the Philippines, SM Center Sangandaan

SM Prime Holdings to open its 53rd mall in Philippines on October 9, 2015

Pasay City, Philippines, 2015-10-8 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, opens SM City Cabanatuan on October 9, 2015. It is SM Prime’s 53rd mall in the country, and the second mall within Nueva Ecija – along with SM Megacenter Cabanatuan. The new mall provides an additional 154,020 square meters (sqm) in gross floor area (GFA), expanding SM Prime’s total retail space to 6,762,419 sqm in the Philippines.

SM City Cabanatuan is strategically located along Maharlika Highway in Cabanatuan City, which is the largest city in Nueva Ecija. The city, seated between the provinces of Pampanga, Bulacan, Tarlac and Aurora, serves as the Gateway to the North. This has made the city one of the business, transportation, medical and educational centers in Region III.

“The opening of SM City Cabanatuan is SM Prime’s commitment to be part of the growth of the province. The opening of new malls is timely given the expected higher growth in overall consumption in the 4th quarter. The economy’s sustained GDP growth in the past 5 years is now spreading to the provinces and we at SM Prime will continue to expand in these provinces that are enjoying high growth, like in Cabanatuan City, where we see significant development and huge unserved demand for shopping experiences,” SM Prime President Hans T. Sy said.

The mall will open with 90% lease-awarded, which are leased to various tenants and will serve over 270,000 residents. The shopping mall will have anchor tenants such as The SM STORE, SM Supermarket, Ace Hardware, SM Appliance Center, Watson’s, The Body Shop, Surplus Shop and UNIQLO.

The new SM Supermall will provide an exciting and state-of-the-art shopping experience for the local shoppers, making it a destination mall. SM City Cabanatuan creates a memorable identity on its primary highway frontage with bold and dynamic colors that complements a featured curved wall. The four-level mall also includes two Sky Gardens namely, the Garden Park,which provides covered shelter; and the Roof Park located at the fourth level. The mall will have six cinemas (five cinemas with a 275-seating capacity; one large format cinema with a 525-seating capacity) and 2,500 parking slots for cars and motorcycles.

The interior of SM City Cabanatuan was carefully designed around a simple yet efficient plan that allows shoppers to easily stroll around and provides clear line-of-sight to all shops on all levels at the same time. Interior bridges are strategically built that provide convenient access to all passages of the mall, supplemented by a centrally located glass elevator and escalators. The main interior features a dynamic ceiling that utilizes height of the mall to provide ample daylight, making the mall look spacious, bright and cozy.

To date, SM City Cabanatuan is the third SM Supermall to be opened this year, after SM City San Mateo that recently opened last May 15. For the rest of 2015, SM Prime is scheduled to open SM Center Sangandaan in Caloocan, andSM Seaside City Cebu. The company is also set to expand SM City Lipa in Batangas and SM City Iloilo this year. By the end of 2015, SM Prime will have 55 malls in the Philippines and six in China with an estimated combined GFA of 8,269,486 million sqm.

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.

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For further information, please contact:

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

SM Prime Holdings to issue Fixed Rate Peso Retail Bonds up to PHP15 Billion

Pasay City, Philippines, 2015-9-21 — /EPR Retail News/ — SM Prime Holdings, Inc. (SMPH) announced today that its Board of Directors approved the issuance of Fixed Rate Peso Retail Bonds up to Php15 Billion with an over subscription option of up to Php5 Billion with maturities of 5.25 years and 10 years.

The Board of Directors also authorized the management to negotiate and finalize the terms and conditions, including pricing, tenor and any increase in issuance amount, and execute any and all documents necessary, to implement the retail bond issue.

SOURCE: SM Investments Corporation

Philippines: SM Prime Holdings received gold award for its first mall in China – SM City Xiamen in Fujian Province

Pasay City, Philippines, 2015-9-7 — /EPR Retail News/ — Property conglomerate SM Prime Holdings, Inc. received a prestigious gold award for SM City Xiamen, Fujian Province, its first mall in China.

SM City Xiamen/SM Lifestyle Center won the Mall China Golden Mall Awards 2015 Commercial Asset Management Company Gold Award. Only eight companies were given the prestigious gold award during the 13th Annual Conference of Mall China International Symposium hosted by China Shopping Center Development Association (Mall China), an annual gathering of major shopping malls and retailers in China.

“On behalf of SM, I would like to express gratitude to our valued partners and loyal customers. Without your continued support, SM will not thrive in China, among the world’s largest retail markets. We maintain to drive retail service as our main backbone, with an aim to create an environment people can call their second home,” SM Prime’s mall group, SM Supermalls Senior Vice President Steven Tan said.

The awarding ceremony was held on September 4th, 2015 in Shenzhen,China. Mall China highly recognized SM Prime’s insight and expertise into retail, commercial real estate and shopping center development in China. SM Xiamen was also voted number 1 in WeChat, a popular messaging service in China.

This is the sixth time since 2011that SM Prime has been recognized by Mall China.

Mr. Tan, for his part, received the 2015 International Professional Leader Award for his insight into retail, commercial real estate and shopping center industry in China and promoting and giving significance guidance on development strategy.

SM opened its first mall in China, SM City Xiamen in 2001 with a gross floor area (GFA) of 128,203 square meters. In 2009, the upscale SM Lifestyle Center in Xiamen was opened with a GFA of 109,922 sqm. In 2013, the SM Skywalk was launched, linking SM Xiamen and SM Lifestyle Center, providing more convenience to customers.In the last two years, SM Xiamen and SM Lifestyle Center offered WiFI services, increased parking lots, added facilities for persons with special needs and a nursery room for mothers, installed LED facilities and installed an intelligent parking system all aimed at a better customer experience. Aside from these, SM also upgraded the brands inside the mall.

Established in 2002, Mall China is the first non-profit organization in Mainland China catering to China’s retail property sector. It is likewise the largest shopping center retail organization in China. It has 700 corporate members of investors, developers, operators, retailers and relevant service agencies.

Mall China established the Golden Mall Awards to promote the best malls and encourage enterprises which have made outstanding contributions to the development of the shopping mall industry. Golden Mall Awards recognize and evaluate recent opening or under-construction projects.

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About SM Prime in China
SM Group was founded by Mr. Henry Sy, Sr. Since entering the Chinese market, the SM Group through SM Prime Holdings Inc. (SM Prime) has set up shopping centers in Xiamen, Jinjiang, Chengdu, Suzhou, and Chongqing. Another mall, SM City Zibo, which spans 150,600 sqm, is set to open in 2015. These malls have demonstrated the goal and impact of the SM Group’s strategy to build “new centers of urban life” and have improved local business facilities and quality of life.

For further information, please contact:
Mr. Alex Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +63 (2) 862-7940

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Philippines: SM Prime Holdings received gold award for its first mall in China - SM City Xiamen in Fujian Province

SM Supermalls Senior Vice President (fourth from right) Steven Tan receives the Mall China Golden Mall Award on behalf of SM. With Mr. Tan are the other winners and the presenter (first from right) Michael Lloyd, Chairman of The TOMLIK Group.

SM Prime Holdings, Inc. reports consolidated net income growth of 90% to PHP18.7 billion from PHP9.8 billion in the first half of 2015

Pasay City, Philippines, 2015-8-3— /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, registered a consolidated net income growth of 90% to PHP18.7 billion from PHP9.8 billion in the first half of 2015. Excluding one–time trading gains on the sale of marketable securities, the company’s recurring income grew by 15% year-on-year to PHP11.2 billion.

Meanwhile, consolidated revenues grew by 8% to PHP35.9 billion from PHP33.3 billion in the first six months of 2015, mainly driven by the continued growth in rental revenues as well as higher revenue recognition on completed projects of its real estate business.

“The strong financial performance posted by SM Prime in the first half of the year is reflective of the benefits derived from a diversified property portfolio as both rental and developmental incomes contributed to the overall performance of the company. The sustained growth could be attributed to the consolidation of SM Prime, which resulted to a strong balance sheet that allowed us to pursue all projects as planned. We are confident that we can sustain this growth in the long-term.” SM Prime President Hans T. Sy said.

Rental revenues from retail and commercial spaces, accounted for 54.2% of the consolidated revenues, recording a 10% gain to PHP19.4 billion from PHP17.7 billion in the first half 2015. The growth in rental revenues was mainly driven by rising contribution from the new malls and the expansion of shopping spaces in existing malls in 2013 and 2014. These include SM Aura Premier, SM City BF Parañaque, Mega Fashion Hall in SM Megamall, SM City Cauayan, SM Center Angono and the expansion of SM City Bacolod with a total gross floor area of 652,000 square meters.

Growth was also propelled by the increase in SM Prime’s office spaces. Aside from the recently launched SM Cyberwest in Quezon City, SM Prime unveiled FiveE-com Center at the MOA Complex last May 2015 which is already fully occupied. Meanwhile, same-store rental remained at 7%, sustaining the growth posted in 2014.

SM Prime’s real estate sales which contributed 34.2% to consolidated revenues, was up by 3% to PHP12.3 billion from PHP 11.9 billion in the same period last year. This allowed the group to post an 8% increase in net income to PHP3.0 billion. Growth was primarily due to the increase in the sales take-up and higher construction accomplishment of projects launched in 2010 to 2013 namely Wind Residences in Tagaytay, Green Residences in Manila, Breeze Residences in Manila, Grace Residences in Taguig, Shore Residences in Pasay, and Trees Residences in Quezon City.

The housing group’s reservation sales grew by 24% year-on-year to 6,868 units in the first half of 2015 translating to a 28% increase in value worth PHP18.8 billion from PHP14.7 billion in the first half of 2014. Most of the reservation sales were generated from Air Residences, Shore Residences, Shore 2 Residences, Fame Residences and Grace Residences in Makati, Pasay, Mandaluyong and Taguig City, respectively.

Cinema and event ticket sales, accounted for 6.6% of consolidated revenues, recovered in the second quarter registering a 7% year-on-year increase to PHP1.4 billion as compared to a decline year-on-year of 8% to almost PHP1.0 billion the previous quarter. This brought cinema and event ticket sales to PHP2.4 billion in the first half of 2015, almost flat from the same period last year. The recovery of ticket sales in the second quarter were due to big Hollywood movies like “Avengers – Age of Ultron,” “Fast and Furious 7” and “Jurassic World”.

Meanwhile, consolidated costs on real estate declined 1% to PHP6.7 billion compared with last year’s PHP6.8 billion. The decrease was attributed to the improving cost efficiencies, tighter monitoring and control of construction costs implemented since 2012. This boosted gross profit margin on real estate sales from 43% in 2014 to 46% in first half 2015. Net income margin likewise improved from 23% to 24% in the same period.

In the first half of the 2015, SM Prime opened SM Megacenter Cabanatuan and SM City San Mateo last April and May, respectively, 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. Combined, these new and expanded malls will have a total GFA of almost 716,000 sqm. By the end of 2015, SM Prime will have 55 malls in the Philippines and six malls in China with an estimated combined GFA of 8.3 million sqm.

SM Prime currently has 26 residential projects in the market, 24 of which are in Metro Manila and two in Tagaytay. For 2015, SM Prime’s residential arm SM Development Corporation will launch at least five new condominiums with about 12,000-15,000 units in total in the cities of Taguig, Quezon, Mandaluyong, Tagaytay, Las Piñas, Parañaque and Pasay at the Mall of Asia Complex.

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.

SM Prime will remain 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.

-End-

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

Philippines: SM Prime Holdings poised to ride the wave of growth in the BPO sector with the expansion of EcomCenters in the Mall of Asia Complex

Pasay City, Philippines, 2015-7-27 — /EPR Retail News/ — SM Investments Corporation’s property arm, SM Prime Holdings is poised to ride the wave of growth in the Business Process Outsourcing (BPO) sector with the expansion of EcomCenters in the Mall of Asia Complex in Pasay City.

The EcomCenter complex consists of OneEcom, TwoEcom and the FiveEcomCenter which was launched last May 2015.

“The Philippines remains one of the top BPO destinations in the world which has underpinned the growth in office demand. Our offices in the EcomCenters at the MOA Complex continue to offer world class facilities, further enhanced by their proximity to major business districts, retail establishments, transport lines and major ports,” David Rafael, Senior Vice President for SM Prime Commercial Properties said.

Industry analysts said that the BPO industry is projected to earn US$25 billion in revenues and employ 1.3 million and 3.2 million people directly and indirectly by 2016, equivalent to around eight percent of the Philippine economy.

Data from real estate consultancy KMC Research & Consultancy indicated that office take-up in the MOA Complex area increased by 11.8% in 2014 from last year. Prime rents rose by 8.5% to PHP602.60 per square meter per month while vacancy rates are likely to remain low at 2%.

In 2015, new supply will come from FiveEcomCenter which is already 80% pre-leased. With an investment of almost PHP3 billion, the new FiveEcom will have a gross floor area (GFA) of 141,706 sqm and an estimated gross leasable area (GLA) of 83,000 sqm.

BPOs can look forward to large floor plates of up to 7,500 sqm. At the same time, selected floors will cater to smaller office space requirements.

The air-conditioning system has been designed in the variable refrigerant volume (VRV) format in order to provide tenants with greater flexibility to match their operations, spelling cost savings for them. It will also feature basement parking, a pioneering feature among buildings in the Mall of Asia Complex.

Designed by Miami-based Arquitectonica, FiveEcom’s innovative architecture is characterized by cantilevered rectilinear designs. Like TwoE-com, it will offer mixed-use areas on its open-air fourth floor podium that will provide nearby Manila Bay views.

A ground floor arcade will house accessible retail shops and daily conveniences of building occupants. As with the previous two buildings as well, it will be interconnected to One and TwoE-com through covered bridgeways, offering convenience to future tenants. It is served by round-the-clock security, utilities, and power. In fact, FiveEcom is also equipped with enough generator sets to provide for 72 hours of continuous emergency back-up power.

Aside from FiveEcom, SM Prime Commercial Properties will soon develop ThreeEcomCenter which will feature a semi-circular twin tower structure and FourEcomCenter with a prism-like design. It is set to receive Gold LEED Certification, making ThreeE-com Center the first LEED Certified building in MOA Complex.

Apart from their strategic locations, EcomCenters also offer operational efficiencies due to their large floor plates. The fiber optic loop system within the MOA Complex provides BPO tenants telco redundancy not only in terms of distribution but also in terms of source.

The EcomCenters are also structurally reinforced in certain areas to accommodate tenants’ data centers. Another major advantage of locating in the EcomCenters is the available parking space which consist of designated areas in the buildings and the entire MOA complex. The buildings also showcase unique designs that make them a prestigious office address.

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For further information, please contact:
April Misa
Senior Manager –Office Leasing
SM Prime – Commercial Properties Group
april.misa@smprime.com
Mobile: 0917 557 8197
Direct Line: 858 0353

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Philippines: SM Prime Holdings poised to ride the wave of growth in the BPO sector with the expansion of EcomCenters in the Mall of Asia Complex

The FiveEcomCenter at the Mall of Asia Complex in Pasay City

SM Investments Corporation (SM) reports 14.4% increase in recurring net income

Pasay City, Philippines, 2015-3-5 — /EPR Retail News/ — SM Investments Corporation (SM) reported a record net income in 2014 of PHP28.4 billion. Excluding extraordinary items, recurring net income grew 14.4%.

SM’s underlying earnings growth was mainly driven by BDO Unibank, Inc., which posted a core income growth of 18%. Together with China Banking Corporation, banks accounted for 41% of SM’s consolidated net income in 2014. Property contributed 38% and retail 21%.

The record 2014 consolidated net income of PHP28.4 billion compares with PHP27.4 billion in 2013. These include exceptional items such as trading gains from the group’s banking businesses.

Consolidated revenues grew 9% to PHP275.7 billion in 2014 from PHP253.3 billion in 2013. This was the result of a good retail sales environment which also boosted rental revenues in SM’s property business.

The total assets of SM grew 12% in the past year to PHP711.9 billion. SM maintains a very healthy balance sheet with a conservative gearing ratio of 34% net debt to 66% equity.

SM raised PHP15 billion in May 2014 from a public offer of peso-denominated retail bonds with maturities of 7 and 10 years. The SM bonds were rated 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.

“The group’s strong underlying earnings growth of 14.4% in 2014 was the result of solid performance and ongoing expansion in all our three core businesses. During the year we raised additional capital and entered into several strong partnerships, accelerating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philippines,” SM President Harley T. Sy said.

Banking
BDO Unibank, Inc. (BDO) recorded net income attributable to equity holders of the parent of PHP22.8 billion compared with PHP22.6 billion in 2014. BDO’s recurring income grew 18%, excluding one-off trading gains in 2013.

Net interest income grew 19% to PHP51.2 billion in 2014, mainly due to 20% growth in the bank’s customer loan business to PHP1.1 trillion. Meanwhile, total deposits registered PHP1.5 trillion, 11% higher than the previous year.

BDO’s total capital adequacy ratio (CAR) of 14.4% and common equity tier 1 (CET 1) ratio of 12.4% remain well above the Basel III regulatory minimums of 10% and 6% respectively.

BDO continues to be the largest bank in the Philippines in terms of total resources, loans and deposits and is the leader in investment and private banking.

Meanwhile, China Banking Corporation (China Bank) posted a full year consolidated net income of P5.11 billion in 2014 on the back of sustained growth in core business operations. This translates to a return on equity of 9.90% and return on assets of 1.12%.

China Bank’s net interest income grew 42% to P14.09 billion, largely due to earnings from loans and receivables. Total operating income reached P18.85 billion, up 25%.

Property
SM also drew strength from its property operations through SM Prime Holdings, Inc. which registered consolidated net income of PHP18.4 billion in 2014, up 13% on revenue growth of 11% to PHP66.2 billion.

SM Prime’s rental revenues rose 13% to PHP36.5 billion from PHP32.2 billion in 2013, mainly from new malls openings and expansions in 2013 and 2014, together with sustained same-store rental growth of 7%. SM Prime’s housing group recorded a 7% increase in real estate sales in 2014 to PHP22.2 billion, with reservation sales increasing 36.5% to PHP35.9 billion. Mall cinemas generated ticket sales of PHP4.3 billion, an increase of 14% during the period under review.

2014 marked a significant milestone as SM Prime opened its 50th mall in Angono, Rizal province, bringing its total gross floor area to 6.5 million sqm. SM Megamall became the country’s largest mall with a gross floor area of 484,373 sqm after opening its 101,005 sqm Mega Fashion Hall.

SM Prime continued its successful development of malls in China and plans to open one mall per year going forward. SM Prime’s sixth mall in China will be in Zibo, Shandong Province and its largest mall, spanning 540,000 sqm, will open in the Tianjin Binhai New Area. Currently SM Prime operates five malls in China with a total gross floor area of almost 800,000 sqm.

Retail Operations
Its retail operations under SM Retail Inc. sustained its growth with net income increasing by 3.3% to PHP5.9 billion while total sales rose 9.0% to PHP197.1 billion.

SM’s food retail business continued to expand in both urban and rural communities, adding 28 new stores in various parts of Luzon, Visayas and Mindanao. SM Retail forged strong partnerships with local and foreign players to accelerate its expansion program, growing its community mall supermarket presence through relationships with CityMalls and WalterMart and developing small format mini-marts in conjunction with Alfamart.

In the department store business, the SM Store added new locations in Cauayan, Isabela and Cabanatuan, Nueva Ecija. The SM Store continued to innovate and enhance its store layout and design and to introduce new brands to its merchandise mix. In the last few years, SM has introduced fashion brands such as Forever 21, Uniqlo, Sfera, Suite Blanco, Josef and other lifestyle brands such as Uno de 50 and Crate and Barrel.

At end 2014, SM Retail had a total of 269 stores, comprising 50 SM Stores, 40 SM Supermarkets, 42 SM Hypermarkets, 113 Savemore stores and 24 WalterMart stores.

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. 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

SM Prime Holdings, Inc. clinched three major awards recognizing the company’s malls in China at The 12th Annual Conference of Mall China International Symposium

Pasay City, Philippines, 2014-10-2— /EPR Retail News/ — Property conglomerate SM Prime Holdings, Inc. clinched three major awards recognizing the company’s malls in China. The 12th Annual Conference of Mall China International Symposium hosted by China Shopping Center Development Association (Mall China) recognized SM Prime for the following malls:

SM City Xiamen/SM Lifestyle Center was awarded the Mall China Golden Mall Awards 2014 City Advancement Award.

SM City Chengdu Chenghua received the Mall China Golden Mall Awards 2014 Community Shopping Center Award.

SM City Chongqing Yubei won the Mall China Golden Mall Awards 2014 Regional Shopping Center Award.

The awarding ceremony was held on September 22, 2014 in Beijing. Mall China highly recognized SM Prime’s expertise in shopping mall development and operations as well as its brand competitiveness. It said that SM Prime’s shopping malls have demonstrated “beyond-standard capabilities in infrastructure optimization, brand selection and distribution, attentive customer services, and innovative culture.”

This is the second win in Year 2014 for SM Prime after garnering two Mall China Awards on April 7.

“With the dramatic growth of the business and the challenges of rising e-commerce, we will stick to the SM philosophy of consistent endeavor on the brand, culture, service and innovation,” Allan Brosas, AVP Operations of SM China said. He reiterated how important it is to ensure a good customer experience, and to put ourselves into the customers’ shoes and create a perfect shopping experience for them.

Established in 2002, Mall China is the first non-profit organization in Mainland China catering to China’s retail property sector. It is likewise the largest shopping center retail organization in China. It has 700 corporate members of investors, developers, operators, retailers and relevant service agencies.

Mall China established the Golden Mall Awards to promote the best malls and encourage enterprises which have made outstanding contributions to the development of the shopping mall industry. Golden Mall Awards recognize and evaluate recent opening or under-construction projects.

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About SM Prime in China
SM Group was founded by Mr. Henry Sy, Sr. Since entering the Chinese market, the SM Group through SM Prime Holdings Inc. (SM Prime) has set up shopping centers in Xiamen, Jinjiang, Chengdu, Suzhou, and Chongqing. The largest SM mall in China is under construction in Tianjin with a gross floor area of 540,000 square meters (sqm). Another mall, SM City Zibo, which spans 154, 900 sqm, is set to open this year. These malls have demonstrated the goal and impact of the SM Group’s strategy to build “new centers of urban life” and have improved local business facilities and quality of life.

For further information, please contact:
Mr. Alex Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +63 (2) 862-7940

SM City Xiamen/SM Lifestyle Center won the Mall China Golden Mall Awards 2014 City Advancement Award. Receiving the award on behalf of SM is Mr. Allan Brosas, AVP Operations of SM China (fourth from left).

SM City Xiamen/SM Lifestyle Center won the Mall China Golden Mall Awards 2014 City Advancement Award. Receiving the award on behalf of SM is Mr. Allan Brosas, AVP Operations of SM China (fourth from left).