SM Prime Holdings Inc., the Philippine's premier shopping mall chain, posted a net income of P813.9 million in the first three months ended March 31, 2000, up by 10 percent from last year's P740.2 million. Total revenues for the period grew 11 percent to P1,395.9 million from P1,254.4 million in the first quarter of 1999. Rental revenues for the first quarter increased by a noteworthy 14 percent to P1,074.9 million from the previous year's P945.1 million.
Income from operations amounting to P878.6 million for the three month period in 2000 increased by 13 percent from last year's P775.7 million. Operating expenses increased by eight percent to P517.4 million from P478.7 million. Net interest income and others decreased by nine percent to P133.4 million from last year's P146.8 million, due to lower interest rates this year.
The publicly listed company opened its ninth mall, the 170,000 square meter SM City-Manila to an overflow crowd on April 29, 2000. On opening day, the mall space was 86 percent lease-awarded, the higher ever among the SM malls. Among those that welcomed the shoppers and visitors on the inaugural day were Shoemart department store and supermarket, Ace Hardware, SM Appliance Center, Health & Beauty, Surplus Shop, Family Drug Store, SM Food Court, 12 cinemas, and a host of other shops.
The six-level mall is strategically located in the heart of Manila, right by the Light Railway Transit near Manila City Hall. It is also surrounded by a number of densely populated universities. The two commercial and business districts of Quiapo and Binondo are a short distance away. The mall, which has its own 11-level parking building good for 1,300 vehicles, is easily accessible as its bounded by three busy major streets, Arroceros, Concepcion, and San Marcelino. SM City-Manila is likely to become a shopping and leisure landmark given its prominence in size and site.
At the company's annual stockholder's meeting on April 27, 2000, the stockholders approved an increase in the authorized capital stock of the company from P10 billion to P15 billion, consisting of 15 billion shares at a par value of one peso per share. The board of directors, at an earlier meeting, declared a seven percent cash dividend to stockholders of record as of May 15, 2000.