MALL operator SM Prime Holdings Inc. on Tuesday said it will register with the Securities and Exchange Commission some P60 billion worth of bonds that will be issued over the next three years.
 
The property arm of the Sy family said it will initially offer within the year P10 billion worth of fixed rate bonds with a 10-year maturity.
 
The offer consists of P5 billion as principal amount and another P5 billion as oversubscription option.
 
“The board of directors also authorized the management to negotiate and finalize the terms and conditions, including pricing, tenor and any increase in issuance amount; and execute any and all documents necessary to implement the retail-bond issue,” the company said.
 
SM Prime Holdings Inc. reported a net income of P5.98 billion in the first quarter, much lower than the previous year’s P12.77 billion.
 
Consolidated revenues for the period rose 10 percent to P18.2 billion, from P16.65 billion a year ago.
 
During the period, the company’s revenues from shopping malls surged 11 percent to P11 billion, from P9.9 billion in the previous year.
 
Mall revenues account for 60 percent of SM Prime’s consolidated revenue, for which 85 percent comes from rental income.
 
Growth was largely driven by new malls and expansion of existing malls in 2015, including new properties in South Road Property in Cebu, Cabanatuan, San Mateo in Rizal, Sangandaan in Caloocan and in Iloilo. These have a total gross floor area of 738,000 square meters.
 
Excluding the new malls and expansions, same-store growth averaged 7 percent, the company said.
 
SM Prime’s residential group, which contributed 32percent of consolidated revenues, posted P5.8 billion in revenues during the period, an increase of 5 percent, brought about by higher construction completion of SM Development Corp. projects launched in 2013 to 2015.
 
The company said it has earmarked P180 billion for capital expenditures for the next three years to drive growth.
 
It plans to double its net income to P32 billion by 2018, from P16 billion in 2014, after the consolidation of the property business of the SM Group of Cos. under the listed SM Prime.
 
Hans Sy, SM Prime president, earlier said the firm will continue to build new malls while expanding existing malls.
 
This year SM Prime will open new malls in Trece Martires in Cavite; San Jose del Monte, Bulacan; Cherry Congressional; Cherry Antipolo: and East Ortigas.
 
SM Prime will also be redeveloping portions of its Mall of Asia Complex, investing P1.5 billion to increase its retail area to 700,000 sq m. Up for expansion, as well, is SM Clark in Pampanga, to include office space for the business-process outsourcing sector.