SM Prime income up 10%

SM Prime Holdings, Inc., the Philippine’s premiere and largest shopping mall chain, posted a net income of P2.601 billion for the nine months ended Sept. 30, 2001, an increase of 10 percent from last year’s P2.358 billion.

Revenues grew a remarkable 17 percent to P5,165 million compared to the previous year’s P4,402 million. Rental revenues increased by 18 percent to P4,082 million from the previous year’s P3,462 million.

Income from operations grew to P3.128 billion from last year’s P2.757 billion or an increase of 13 percent. The financial condition of the company remains strong with a cash balance of P9.4 billion. Current ratio remains at a healthy level of five times to one. Total assets increased to P38.3 billion from P35.6 billion of the same period last year.

In April this year the company opened its 11th mall, the 57,000-square meter SM Sucat-Supercenter in Paranaque to a highly receptive market. By opening day, 90 percent of the mall space had been lease-awarded and 80 percent occupied and operating SM Sucat-Supercenter brings SM Prime’s total mall space to 1.64 million square meters.

SM Prime is opening its 12th mall, SM City-Davao on Nov. 17, 2001. SM City Davao, a 76,000 square-meter three level mall, is expected to bring SM’s shopping, leisure and entertainment excitement to Davao City. It is the company’s first mall in Mindanao. Located in Ecoland, Barangay Matina, Quimpo Boulevard, Davao City, the mall will be an exciting mix of the best of Manila, Cebu and Davao tenants as well as international food and retail chains. It will have about 200 stores restaurants, leisure and entertainment areas. The mall also features six state of the art theaters and amusement areas.

SM City-Davao will also serve customers in the Region II area-Davao del Norte, Davao Oriental, Davao del Sur, and Campostela Valley as well as the nearby provinces of Cotabato, Bukidnon, Agusan and Butuan. These areas are sites of thriving agricultural, fishing and mining companies as well as multinational corporation investments.

SM Prime has an existing landbank of 164 hectares in 15 strategic locations all over the country. It plans to open two new malls every year in the next five years with SM City Bicutan and SM City Cagayan de Oro opening in 2002. An expansion for an annex building for SM City Pampanga and SM City North Edsa is also being undertaken.

The company has steadfastly gone on with its long-range plans as it continues to acquire land for mall development purposes.