SM Prime Holdings, Inc., the country’s largest shopping mall developer and operator, posted a 9 percent growth in consolidated net income to P4.7 billion in January to September 2008 over that of last year.
The firm disclosed to the Philippine Stock Exchange that its revenues grew by 10 percent to P12.8 billion, during the same period, while EBITDA increased by 10 percent to P8.9 billion for an EBITDA margin of 69 percent.
These results include the operations of the three SM malls in China following their acquisition late last year. The SM China malls are located in the cities of Xiamen and Jinjiang in Southern China and Chengdu in Central China.
SM Prime President Mr. Hans T. Sy said 'it is very encouraging for us to see steady growth in SM Prime’s operations this year at the back of a very challenging business climate. We feel fortunate that Asia appears to be in a much better position to weather the global financial turmoil.'
From January to September of 2008, rental fees still accounted for the largest share to SM Prime’s consolidated revenues with P11.1 billion, up 14 percent year-on-year.
The increase came from both same store rental growth, which increased 5 percent and from additional floor space generated by new malls namely SM City Marikina in September of this year, and SM City Bacolod, SM City Taytay, and SM Supercenter Muntinlupa in 2007.
In addition, three existing malls expanded last year. These are SM City Pampanga, SM City Cebu, and SM Mall of Asia.
Combined, the new malls and expansions added 475,000 square meters (sqm) to SM Prime’s total gross floor area (GFA). The average occupancy rate for the new malls now stands at 94 percent.
Meanwhile, cinema ticket sales, fell by 7 percent to P1.3 billion from P1.4 billion in 2007 due to a dearth of blockbuster movies during the period.
Operating expenses during the first nine months of 2008 increased by 9 percent, to P5.9 billion, from P5.4 billion during the same period in 2007 as effective cost-saving measures undertaken in all SM malls have kept costs growing by single-digit levels, notwithstanding spiraling fuel and power costs during the period.
Thus, income from operations rose 12 percent to P7.0 billion from P6.3 billion.
For the remainder of 2008, SM Prime is set to open SM Supercenter Rosales in Pangasinan and SM City Baliuag in Bulacan. The new Atrium of SM Megamall is also expected to be open for business in November.
SM City North EDSA, and SM City Fairview are also currently undergoing expansion and due for completion in 2009. By end 2008, SM Prime will have 33 malls nationwide. Including the SM China malls, total estimated GFA will reach 4.7 million sqm.
SM Prime was founded by Henry Sy, the nation's richest man with an estimated wealth of US$ 3.1 billion, according to a ranking by Forbes Asia last month.