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.

Zalando releases trading update for third quarter of 2016

BERLIN, 2016-Oct-20 — /EPR Retail News/ — Zalando SE, Europe’s leading online platform for fashion, grew group revenues in the third quarter of 2016 to EUR 827-841 million or by 16-18% (Q3 2015: EUR 713 million), according to preliminary figures. Zalando expects to achieve an adjusted EBIT of EUR 8-25 million, corresponding to an adjusted EBIT margin of 1.0-3.0% (Q3 2015: EUR -24 million, -3.3%). In the first nine months of 2016 Zalando achieved revenues of EUR 2,540-2,554 million, growing by around 22% (first nine months 2015: EUR 2,090 million). Adjusted EBIT for the first nine months is expected to come in at EUR 109-126 million, a margin of around 4.6% at the mid-point of the range (first nine months 2015: EUR 36 million, 1.7%).

Rubin Ritter, co-CEO, said: “In the third quarter we outperformed a sluggish fashion market and improved our profitability significantly, allowing us to increase our guidance for the full-year EBIT margin. We remain on track to reach our targeted revenue growth for the full year. This proves again our ability to find the adequate tradeoff between growth and margin, depending on market conditions.”

As a result, Zalando reiterates its growth ambition for the next few years with 2016 coming in towards the higher end of the 20-25% growth corridor and increases full-year adjusted EBIT margin guidance for 2016 to 5.0-6.0%.

All figures reported herein are preliminary and unaudited. Full financial disclosure for the third quarter will be published on November 10, 2016.

ABOUT ZALANDO
Zalando (https://corporate.zalando.com) is Europe’s leading online fashion platform for women, men and children. We offer our customers a one-stop, convenient shopping experience with an extensive selection of fashion articles including shoes, apparel and accessories, with free delivery and returns. Our assortment of over 1,500 international brands ranges from popular global brands, fast fashion and local brands, and is complemented by our private label products. Our localized offering addresses the distinct preferences of our customers in each of the 15 European markets we serve: Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Poland and the United Kingdom. Our logistics network with three centrally located fulfillment centers in Germany allows us to efficiently serve our customers throughout Europe. We believe that our integration of fashion, operations and online technology give us the capability to deliver a compelling value proposition to both our customers and fashion brand partners. Zalando’s shops attract over 160 million visits per month. In the second quarter of 2016, around 65 per cent of traffic came from mobile devices, resulting in 18.8 million active customers by the end of the quarter.

CONTACT:
René Gribnitz
VP Communications
rene.gribnitz@zalando.de
+49 30 20968 2022

Source: Zalando

Kimco Realty announces transaction activity for third quarter of 2016 exceeded $360 million

NEW HYDE PARK, NEW YORK, 2016-Oct-12 — /EPR Retail News/ — Kimco Realty Corp. (NYSE: KIM) today (October 11, 2016) announced that its transaction activity for the third quarter of 2016 exceeded $360 million. This includes the previously announced partner buyout of a four-property joint venture portfolio for a gross price of $169.0 million and the acquisition of Kentlands Market Square shopping center for $95 million.

Additionally, in the third quarter Kimco sold five of its remaining six Canadian shopping centers. The third quarter transactions highlight the company’s continuing commitment to its strategic 2020 Vision focused on owning high-quality assets in major metro markets in the U.S., and reducing its exposure to joint ventures.

Third Quarter Transaction Activity: Dispositions: Sales for the third quarter totaled $150.7 million from the disposition of 12 shopping centers, totaling 1.4 million square feet. Kimco’s share of the sales price was $97.8 million. The sales consist of:

• Seven unencumbered U.S. properties, totaling 430,000 square feet, for a gross sales price of $53.3 million. The company’s share from these sales was $49.0 million.

• Interests in five Canadian shopping centers, totaling 1.0 million square feet, for a gross sales price of USD $97.4 million, including USD $22.5 million of existing mortgage debt. Kimco’s share of the sales price was USD $48.7 million.

The company’s 2016 guidance range for shopping center dispositions is $1.0 billion to $1.15 billion (Kimco’s share); year to date, the company’s share totaled $918.6 million from the sale of interests in 34 Canadian properties for USD $571.5 million and 25 U.S. properties for $347.1 million.

Acquisitions: Third quarter acquisitions totaled $292.8 million and 1.0 million square feet. Kimco’s share of the purchase price was $263.4 million.

As previously announced, Kimco acquired:

• The remaining 85% interest in a four-property joint venture portfolio, totaling 681,000 square feet, for a gross price of $169.0 million, which includes the assumption of $77.0 million in mortgage debt. The portfolio includes Perimeter Expo in Atlanta, Cranberry Commons in Pittsburgh, Cypress Towne Center in Houston and Doc Stone Commons in Stafford, Virginia. All four assets are located in major metro markets where Kimco already has a significant presence.

• Kentlands Market Square, a 221,000-square-foot, Whole Foods-anchored open-air shopping center located in the Washington-Arlington-Alexandria metropolitan statistical area (MSA) for $95.0 million which includes the assumption of $33.2 million in mortgage debt. In addition to the high-volume Whole Foods, the property is anchored by national tenants such as PetSmart, Michaels and Starbucks and is one of only two shopping centers located in the “downtown” commercial district of the Kentlands, an affluent, master-planned community in Gaithersburg, Maryland, a northwest suburb of Washington, D.C. The center boasts excellent demographics including a population of 107,000 with a median household income level of $99,000 within a three-mile radius.

In addition, Kimco acquired the following properties during the third quarter:

• An additional 84% ownership interest in the 97,000-square-foot Gateway Shopping Center for a gross price of $18.1 million. The grocery-anchored center is located in the Seattle-Bellevue-Everett MSA, and is a prime redevelopment opportunity.

• A 21,000-square-foot parcel adjacent to Kimco’s Webster Square shopping center for $8.2 million. Webster Square is a 176,000-square-foot multi-anchored property featuring Trader Joe’s, TJ Maxx and Michaels in the desirable retail market of Nashua, New Hampshire.

• A parcel adjacent to Coral Way Plaza, a grocery-anchored shopping center in the Miami-Fort LauderdaleWest Palm Beach MSA, for a gross price of $1.6 million. Kimco’s share of the purchase price was $398,000.

• An additional land parcel at the Grand Parkway Marketplace for $900,000. Located in Spring, Texas, Grand Parkway Marketplace is a Kimco signature development project that will be anchored by a new Target store and will be completed in 2017.

The company’s 2016 guidance range for shopping center acquisitions is $450 million – $550 million (Kimco’s share); year to date, the company’s share totaled $451.9 million.

ABOUT KIMCO

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is North America’s largest publicly traded owner and operator of open-air shopping centers. As of June 30, 2016, the company owned interests in 537 U.S. shopping centers comprising 86 million square feet of leasable space across 36 states and Puerto Rico. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.

SAFE HARBOR STATEMENT

The statements in this news release state the company’s and management’s intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the company’s actual results could differ materially from those projected in such forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates and management’s ability to estimate the impact thereof, (vii) risks related to the company’s international operations, (viii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) valuation and risks related to the company’s joint venture and preferred equity investments, (x) valuation of marketable securities and other investments, (xi) increases in operating costs, (xii) changes in the dividend policy for the company’s common stock, (xiii) the reduction in the company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiv) impairment charges and (xv) unanticipated changes in the company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s SEC filings. Copies of each filing may be obtained from the company or the SEC.

The company refers you to the documents filed by the company from time to time with the SEC, specifically the section titled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2015, as may be updated or supplemented in the company’s Quarterly Reports on Form 10-Q and the company’s other filings with the SEC, which discuss these and other factors that could adversely affect the company’s results. The company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
David F. Bujnicki
Senior Vice President
Investor Relations and Strategy
Kimco Realty Corp.
1-866-831-4297
dbujnicki@kimcorealty.com

Source: Kimco Realty Corp.

CBRE: Vacant space in the U.S. office market held steady during the third quarter of 2016

Los Angeles, 2016-Oct-11 — /EPR Retail News/ — Vacant space in the U.S. office market held steady during the third quarter of 2016 (Q3 2016), at 13.1 percent, according to the latest analysis from CBRE Group, Inc. The national office vacancy rate remained at the lowest level since 2008, with a 30 basis points (bps) decline over the past year.

The office market is being helped by steady demand for space and limited new construction. ”Firms are adding space, but at a more modest pace than in recent years, reflecting slower overall job creation,“ said Jeffrey Havsy, Americas’ chief economist for CBRE. “With supply and demand relatively in balance, vacancy has plateaued for the moment, but the office market should remain healthy as new construction deliveries slow over the next 6-8 quarters.”

Continuing a recent pattern, the suburbs outperformed downtowns, with vacancy falling 10 bps, to 14.3 percent in the suburbs, but increasing 20 bps, to 10.7 percent in downtowns. After lagging downtowns for much of the recovery, the suburbs have now performed better than downtowns for four straight quarters.

“Despite their rumored demise, the suburbs continue to perform soundly. This is especially true of those locations that offer, a live, work, play dynamic and have good transportation access,“ noted Mr. Havsy. “The suburbs have been painted with a negative brushstroke, but that labeling masks the diversity among the various submarkets. Those locations that offer appropriate amenities, have good access and offer modern facilities continue to lease well.”

A majority of U.S. markets saw improved conditions during Q3 2016, with vacancy declining in 37 of 63 office markets, rising in 22, and remaining unchanged in four. The largest quarterly declines in vacancy were recorded in Tucson (170 bps), Cincinnati (130 bps) and Raleigh (120 bps). West Palm Beach, Newark, Las Vegas, Albany, Riverside and Sacramento each declined by 90 bps or more.

Mid-sized markets have been the best performers over the past year. Compared with Q3 2015, Tucson, St. Louis, Raleigh, Riverside, Oakland, Sacramento, Cincinnati and Tampa have experienced the sharpest declines in vacancy.

The nation’s lowest vacancy rates in Q3 2016 were in Nashville (5.5 percent), San Francisco (6.7 percent), Raleigh (8 percent), Austin (8.1percent), Seattle (8.6 percent), Oakland (8.7 percent), San Jose (8.9 percent) and Pittsburgh (9.2 percent).

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:
Robert McGrath
Senior Director, Global Media Relations
+1 212 9848267

Source:  CBRE Group, Inc.