(19 February 2009. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime), the Philippines’ dominant shopping mall developer and operator, reported consolidated net income of Php6.4 billion from January to December 2008, as compared to Php6.0 billion in 2007. Revenues, on the other hand, grew by 12% to Php17.8 billion in 2008, while EBITDA grew 9% to Php12.3 billion, for an EBITDA margin of 69%. These results include the operations of the three SM malls in China, following their acquisition in late 2007. 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, “Notwithstanding the global financial situation, SM Prime achieved its goals and sustained its expansion in 2008. The company performed fairly well and was able to deliver on its targets and objectives due mainly to the unwavering support of its loyal customers, tenants, suppliers, shareholders, and employees. On that high note, we sincerely thank all our stakeholders for another year of valuable growth and for the trust and confidence they have entrusted upon us.”  

In 2008, rental fees continued to account for the largest share of SM Prime’s consolidated revenues, amounting to Php15.4 billion, for a 15.0% increase year-on-year. Bulk of the increase came from additional space in new malls and mall expansions during the year. The new malls were SM City Marikina, SM City Rosales, and SM City Baliwag. Mall expansions were seen in The Annex at SM City North Edsa and The Atrium at SM Megamall. Put together, the new malls and expansions in 2008 added 9%, equivalent to 353,000 square meters (sqm) in gross floor area (GFA) for a total of 4.3 million sqm. The average occupancy rate of the new malls now stands at 93%. Meanwhile, cinema ticket sales during the year were flat due to a dearth of movie blockbusters.

Operating expenses for full year 2008 increased 15.0%, to Php8.2 billion, from Php7.1 billion in 2007, largely because of the new and expanded malls. Income from operations posted a 9.0% growth from Php8.8 billion in 2007 to Php9.6 billion in 2008.

For 2009, SM Prime plans to open SM City Naga in Camarines Sur, SM City Rosario in Cavite, SM City Pamplona in Las Piñas, and the Sky Garden at SM City North Edsa. The company is also set to expand SM City Rosales in Pangasinan. By the end of the year, SM Prime will have 36 malls nationwide and 3 malls in China, with an estimated GFA of 4.9 million sqm.

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For further information, please contact:

Mr. Jeffrey C. Lim
Executive Vice President
SM Prime Holdings, Inc.
Email: [email protected]
Tel. No.: 831-1000 loc. 1406

Date: 

Thursday, February 19, 2009