SM Prime Holdings, Inc., the country’s leading shopping mall developer and operator, posts P4.97 billion net income for the year ended December 31, 2005–an 8% increase from last year’s P4.62 billion.  Gross revenues likewise increased 7% to P10.90 billion in 2005 from P10.21 billion in 2004.  Rental revenues remain the largest portion, with a 10% growth to P9.03 billion from last year’s P8.18 billion. This is largely due to rentals from new SM Supermalls opened in 2004, namely SM City Dasmariñas and SM City Batangas and the opening of SM City San Lazaro, SM Supercenter Molino and SM Supercenter Valenzuela in 2005.

SM City San Lazaro, SM Supercenter Molino and SM Supercenter Valenzuela opened with a total gross floor area of 297,842 square meters.  Currently, these malls have an average occupancy level of 97%.

In May 2006, the Company is set to open the Mall of Asia.  Located on a 60 hectare property overlooking Manila Bay, the 386,000 square meter complex consists of four buildings linked by elevated walkways – Main Mall, the North Parking Building, the South Parking Building, and the Entertainment Center Building.

The Main Mall will include shopping and dining establishments, the Food Court, and the country’s first Olympic size ice skating rink.  The North Parking Building will house the SM Department Store and half of the 5,000 parking spaces, while the South Parking Building will include the SM Hypermarket and more dining areas.  One of the Mall’s main attractions is the Entertainment Center Building, which will offer a spectacular view of the Bay from its row of trendy restaurants, but which will also house bowling and billiard facilities, and ten theaters including a Director’s Club and the country’s first IMAX theater.

The Company opened its 23rd mall, SM City Santa Rosa on February 17, 2006.  Other malls scheduled to open in 2006 are SM City Clark, SM City Lipa, SM Supercenter Frontera Verde, and SM City Bacolod.  Total gross floor area will increase to 3.5 million square meters by end 2006 from 2.8 million square meters as of December 31, 2005.