SM Prime income up 11% to P4.62B in 2004

Mall giant SM Prime Holdings Inc. reported a net income of P4.62 billion last year, up 11 percent from P4.18 billion in 2003.

In a financial report filed with securities regulators, SM Prime said its gross revenues rose 16 percent to P10.21 billion from P8.80 billion the previous year. Bulk of the amount came from rental revenues which increased 17 percent to P8.18 billion compared with P6.98 billion in 2003.

SM Prime said the higher sales was largely due to rentals from three additional SM Supermalls opened in the last quarter of 2003: SM City Lucena, SM City Baguio, and SM City Marilao, and the opening of SM City Dasmariñas and SM City Batangas in 2004.

SM City Dasmariñas and SM City Batangas opened with a gross floor area of 79,792 and 80,350 square meters, respectively. Both malls presently have an average occupancy level of 85 percent.

Cinema and amusement revenues likewise enjoyed favorable growth, with cinema revenues going up 11 percent.

Operating expenses, on the other hand, grew 18 percent due to the opening of five new malls. Depreciation expense for these five new malls also contributed to this increase.

Income from operations, however, remains favorable at P5.78 billion, 15 percent higher than the previous year’s P5.04 billion. Other income increased by 36 percent due to additional interest income.

SM Prime has allotted P5 billion for is capital expenditures this year.

The company expects to sustain its double-digit growth this year with the opening of more new malls.

Construction is ongoing on the SM Mall of Asia, targeted as the country’s premier shopping destination and tourist attraction revitalizing the Roxas Boulevard bay area. The 448,000-square meter mall is set to open in the last quarter of 2005.

Also set to open in 2005 are SM City San Lazaro (Manila), SM Supercenter Valenzuela and SM City Molino (Cavite).