PHILIPPINES: SM Prime open its newest mall in Batangas, SM Center Lemery

SM Prime open its newest mall in Batangas, SM Center Lemery

Pasay City, Philippines, 2017-Dec-18 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, continues to expand in the Southern Luzon as it schedules to open its newest mall in Batangas, SM Center Lemery, this Friday, December 15. This latest mall-destination in the province will add 25,000 square meters (sqm) to SM Prime’s total gross floor area (GFA) in the Philippines.

“Lemery has been a gateway to different attractions in Batangas, and with this, it’s been continually developing to meet the needs and standards of its residents and visitors. SM Center Lemery takes part in meeting these needs. The exciting mix of offerings in the mall are sure to delight every Batangueños, as we have also done in SM City Batangas and SM City Lipa,” SM Prime President Jeffrey C. Lim said.

Opening with almost 90% of space lease-awarded, SM Center Lemery will have three floors of mixed retail and food tenants topped with preferred household brands such as SM Hypermarket, BDO, Ace Hardware, Miniso, SM Appliance Center, Watson’s, Simply Shoes and Surplus. Staying true to its commitment to deliver utmost malling experience, SM Center Lemery will have a Wellness Zone and Cyberzone that will cater to the distinct and discriminating taste and style of Batanguenos.

This year, SM Prime has already launched five new malls namely SM Center Pulilan in Bulacan, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan, SM Cherry Antipolo in Rizal, S Maison at Conrad Manila in Pasay City and SM CDO Downtown Premier in Cagayan de Oro.

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.
Tel. no.: +632 862 7940

PHILIPPINES: SM Prime registered a 15% net income growth to PHP7.79 billion in Q2 2017 from PHP6.75 billion in same period last year

Pasay City, Philippines, 2017-Aug-07 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company registered a 15% net income growth to PHP 7.79 billion in the second quarter of 2017 from PHP 6.75 billion in same period last year. This brought SM Prime’s first half’s net income to PHP 14.39 billion from PHP 12.59 billion of last year, an increase of 14%. Consolidated revenues grew by 10% to PHP 43.25 billion from PHP 39.23 billion in same period last year. Meanwhile, overall operating income went up by 13% year-on-year to PHP 20.11 billion from PHP 17.85 billion.

“SM Prime’s performance in the first half of the year reflects a more balanced revenue and income streams from our various businesses including the growing contribution from our provincial operations. We are happy to report that our investments in the provinces are now bearing fruits, particularly in mall operations given that these account for more than half of our Philippine malls portfolio. In the coming years, we are expecting a growing contribution from our residential group as we are launching more housing projects across the country,” SM Prime President Jeffrey C. Lim said.

Mall Operations

Mall revenues, which contributed 60% of SM Prime’s consolidated revenues, rose by 10% in the first half of the year to PHP 25.68 billion from PHP 23.42 billion last year. Mall rentals improved by 10% to PHP 21.75 billion from PHP 19.79 billion, driven by additional 1.1 million square meters (sqm) gross floor area (GFA) of retail spaces from new malls and expansions in 2015 to 2017, as well as 7% same-mall-sales growth. Cinema and event ticket sales was almost flat at PHP 2.35 billion due to fewer blockbuster movies. Revenues from amusement and merchandise sales amounted to PHP 1.58 billion, up by 26%. Consolidated mall operating income increased by 10% to PHP 14.18 billion from PHP 12.90 billion, while operating margins were stable at 55% in the period under review.

To date, SM Prime has 63 shopping malls in the Philippines and seven in China with a GFA of 7.8 million sqm and 1.3 million sqm, respectively. The company is scheduled to open new malls, including SM City Puerto Princesa in Palawan.

Residential Development

Residential group, which accounts for 32% of SM Prime’s consolidated revenues, recorded a 5% increase in revenues to PHP 13.91 billion from PHP 13.25 billion. Revenue growth came from higher construction accomplishments of SM Development Corporation (SMDC) projects launched since 2014. These are Shore 2 Residences in Pasay City, Air Residences in Makati City, Cool Residences in Tagaytay City, Fame Residences in Mandaluyong City, Trees Residences in Quezon City and South Residences in Las Piñas City.

Recently launched projects continue to enjoy brisk sales, resulting in 22% reservation sales growth to PHP 27.55 billion from PHP 22.60 billion or 8% increase in unit sales to 8,699 units from 8,078 units. These residential projects are mostly located in the Mall of Asia Complex.

Other Businesses

The rest of SM Prime’s businesses posted a revenue growth of 43% to PHP 3.74 billion in the first half of the year from PHP 2.61 billion last year. Operating income increased by 49% to PHP 1.77 billion from PHP 1.19 billion while operating income margin improved by 47% from 45% in the same period. The growth was attributed to the rental revenues from FiveE-comCenter, launched in 2015, and Conrad Manila which opened last June 2016.

Currently, SM Prime has six office buildings with a combined GFA of 383,000 sqm. ThreeE-Com and FourE-Com Centers are under construction and scheduled for completion in 2018 and 2020, respectively. These additional office buildings will add an estimated GFA of 320,000 sqm in the company’s office portfolio. While Hotel and Convention Centers group has a portfolio of six hotels with over 1,500 rooms, four convention centers and three trade halls.

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

SM Investments Corporation again a recipient of The Global Chinese Business 1000 Awards by Yazhou Zhoukan

SM Investments Corporation again a recipient of The Global Chinese Business 1000 Awards by Yazhou Zhoukan

Pasay City, Philippines, 2017-May-23 — /EPR Retail News/ —  Yazhou Zhoukan (YZZ), a leading Chinese business magazine awarded SM Investments Corporation (SM) for The Global Chinese Business 1000 Awards—Outstanding Performance. This marks the fifth year SM has received the award from YZZ.

“We are truly honored and grateful to be recognized once again as a recipient of The Global Chinese Business 1000 Awards by Yazhou Zhoukan.  Apart from the Philippines, China has become an important market for SM.  As such, our company will continue to deliver long-term sustained growth and further expand our footprint through world-class businesses that deliver optimal returns for our investors and make a difference in the lives of millions,” Ms. Dionisio said in her remarks during the awarding ceremony held in Hong Kong.

The Global Chinese Business 1000 Awards assesses all listed Chinese corporations around the globe based on their market value as of end-August 2016 and awards pioneers with outstanding business operations.

SM, through its property arm SM Prime, continues to expand in China as the country’s consumer spending growth remains strong. SM Prime operates seven malls in China, particularly in the second-tier cities such as Xiamen, Jinjiang, Chengdu, Suzhou, Chongqing, Zibo and Tianjin.

SM City Tianjin is the newest landmark within the Tianjin Airport Economic Area at the emerging Binhai New Area, the largest free trade zone in Northern China and a thriving central business district where international corporations in logistics and financial services are setting up offices.

SOURCE: SM Investments Corporation

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. 857-0117

SM Prime Holdings sets interest rates for its Peso-denominated Series G, 7-year retail bonds at 5.1683% p.a

Pasay City, Philippines, 2017-May-06 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime) has set the interest rates for its Peso-denominated Series G, 7-year retail bonds at 5.1683% p.a last May 2. SM Prime issued an aggregate principal amount of PHP15.0 billion of the Series G bonds, with an option to issue an additional amount of up to PHP5.0 billion. The retail bonds will be offered by SM Prime to investors through underwriters from May 4 to May 11, following the receipt of the Permit to Sell from the Securities and Exchange Commission. The retail bonds are set to be issued on May 18.

“The proceeds of the retail bonds will enable SM Prime to pursue our expansions of mall and residential businesses, which are the growth drivers of the company,” SM Prime President Jeffrey C. Lim said.

This series of SM Prime bonds due 2024 is the fourth offering of Peso-denominated retail bonds to the public. Similar to its previous bond issues, the SM Prime Series G bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings). A rating of PRS Aaa is the highest rating assigned by PhilRatings. This rating is given to long-term debt securities with the smallest degree of investment risk. This also indicates SM Prime’s strong capability to meet its financial commitment.

The SM Prime bonds’ joint issue managers are BDO Capital & Investment Corporation and China Bank Capital Corporation, which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corporation, PNB Capital, First Metro Investment Corporation, and SB Capital Investment Corporation.

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

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 to invest at least PHP50 billion per annum to support its developmental goals

Pasay City, Philippines, 2017-Apr-27 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), the Philippines’ leading integrated property company, plans to spend at least PHP50 billion per annum over the next two years to support its developmental goals. SM Prime allocates 80% of its capital expenditure on project developments, mostly for mall and residential development. The remainder is used for land banking.

“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” SM Prime President Jeffrey C. Lim said.

This year, SM Prime is scheduled to open five new malls in the Philippines, all of which are outside Metro Manila. These are: SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas. By the end of 2017, SM Prime will have 65 malls in the Philippines and seven malls in China with an estimated combined GFA of 9.2 million sqm. In the Philippines, 43% of our malls are located in Metro Manila, 35% in Luzon outside Metro Manila, 14% in Visayas and 8% in Mindanao.

For the residential group, SM Prime is slated to launch this year 15,000 to 18,000 residential units in high-rise and mid-rise buildings as well as house and lot developments. The company’s high-rise residences deliver attractive urban lifestyles that serve the growing needs of start-up families and young professionals. To address an even larger market and cut across other segments in the housing spectrum, SM Prime is expanding its product line-up to develop more mid-rise buildings and single detached house and lot within the year.

During its Annual Stockholders’ Meeting, SM Prime declared a cash dividend of 0.26 per share amounting to PHP7.5 billion in favor of all stockholders of record as of May 12, 2017 and payable on May 25, 2017. This is equivalent to a 35% payout of last year’s net income after tax.

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 Investments Corporation

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

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

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

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

To date, SM Prime has 60 shopping malls in the Philippines (7.7 million sqm GFA) and seven in China (1.3 million sqm GFA). For 2017, SM Prime will open at least four new malls in the Philippines with an estimated combined 300,000 sqm of additional shopping space.

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

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

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

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

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

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

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

Source: SM Prime Holdings, Inc.

SM Prime named among the Top 50 Publicly Listed Companies in the ASEAN region; receives ASEAN Corporate Governance Award

Pasay City, Philippines, 2015-12-11 — /EPR Retail News/ — SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, has been recognized as among the Top 50 Publicly Listed Companies in the ASEAN region. SM Prime received the distinction during the inaugural ASEAN Corporate Governance Awards held last November 14 at the Manila Polo Club, Makati City.

“On behalf of the Board of Directors, Management and staff of SM Prime, we humbly accept this prestigious award from the ASEAN Capital Markets Forum (ACMF) and its partners. This award is a testament to our unwavering commitment to good corporate governance, and serves as a major milestone in our effort to promote good governance in all our dealings with stakeholders,” SM Prime Executive Vice President Jeffrey C. Lim said.

The ASEAN Corporate Governance Awards, the region’s most prestigious event that recognizes companies who excelled in practicing good corporate governance, is hosted by ACMF in partnership with the Philippines’ Securities and Exchange Commission. It aims to further educate and inspire companies to instill and maintain good corporate governance in their operations and services.

The Top 50 Publicly Listed Companies were determined by domestic ranking bodies (DRBs) appointed to assess and rank companies in each participating country, namely Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The ranking is based on rating obtained in the ASEAN Corporate Governance Scorecard, a list of corporate governance practices developed by experts in the region based on principles of Organization for the Economic Cooperation and Development and practices recommended by bodies such as the Asian Corporate Governance Association, the International Corporate Governance Network, and the World Bank.

The scorecard is an initiative of ACMF and supported by the Asian Development Bank.

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 named among the Top 50 Publicly Listed Companies in the ASEAN region; receives ASEAN Corporate Governance Award

(From Left to Right) Jeffrey C. Lim, SM Prime’s Executive Vice President; Eunice M. Sotto, SM Prime’s Assistant Vice President for Enterprise Risk Management; and John Nai Peng C. Ong, SM Prime’s Chief Finance Officer.