4 new malls to open this year

MANILA, Philippines – Real estate conglomerate SM Prime Holdings’ net income soared 176 percent to P12.6 billion in the first three months of 2015.

Excluding a one-time gain from sale of marketable securities worth P7.4 billion, SM Prime’s net income was up 14 percent to P5.2 billion in the January to March period.

SM Prime said consolidated revenues also went up 9 percent to P16.7 billion in the first quarter from P15.3 billion in the first quarter of 2014.

“2015 promises to be a strong year and the first quarter numbers seem to reflect that. There are a lot of reasons to be optimistic with consumer spending getting a boost from lower oil prices and improved consumer confidence. The strong economy provides much motivation for us to expand and grow our business more aggressively to take advantage of new opportunities, particularly in the provincial areas. We can grow all areas of business, malls, residences, commercial and tourism-related developments together to achieve synergies,” SM Prime President Hans T. Sy said in a statement.

SM Prime said rental revenues from retail and commercial spaces, which accounted for 57 percent of the consolidated revenues, rose 10 percent to P9.4 billion in the first quarter from P8.6 billion in same period a year ago.

The Sy-led company attributed the growth to the “significant” increase in rental revenues, particularly new malls and expansion of existing malls in 2013 and 2014. Among these malls are SM Aura Premier in Taguig, SM City BF in Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong, SM City Cauayan in Isabela and SM Center Angono in Rizal.

SM Prime’s increasing office spaces, which include TwoE-comCenter in Pasay and SM Cyberwest in Quezon City, also contributed to rental revenues. Same-store rental rose 7 percent in the first quarter.

However, SM cinemas saw a decline in ticket sales, which stood at P1 billion in the January to March period, from P1.1 billion during the same period in 2014. This was attributed to the decrease in blockbuster films shown during the period.

SM Prime said amusement and other revenues jumped 32 percent to P900 million in the first quarter of 2015.

Meanwhile, SM Prime’s housing group reported a 7 percent increase in real estate sales to P5.4 billion in the first quarter. The housing group contributes 32 percent to SM Prime’s consolidated revenues.

The housing group posted a 37 percent rise in net income to P1.3 billion in the January to March period, driven by increase in sales take-up and higher construction accomplishment of projects launched in 2010 to 2013.

SM Prime said reservation sales went up 47 percent to 3,721 units in the first quarter of 2015, which resulted in a 34 percent increase to P9.5 billion in value terms. The bulk of the reservation sales were from Shore Residences in Pasay and Air Residences in Makati.

SM Prime said consolidated costs of real estate fell 2 percent to P2.9 billion in the first quarter.

The real estate conglomerate’s consolidated costs and expenses rose 4.5 percent to P9.2 billion in the January to March period, from P8.8 billion a year ago.

SM Prime is planning to open four new malls this year — SM City San Mateo in Rizal, SM City Cabanatuan in Nueva Ecija, SM Seaside City Cebu, and SM City Sangandaan in Caloocan. Two existing malls — SM City Lipa in Batangas and SM City Iloilo — are also being expanded.

SM Prime’s residential unit is also set to launch at least five new condominiums in Las Piñas, Makati, Pasay and Parañaque, and at the Mall of Asia Complex.

SM Prime is also set to open the Conrad Manila hotel by the end of the year at the Mall of Asia Complex.