SM Prime Holdings, Inc., the country’s leading shopping mall developer and operator, reported earnings as of third quarter 2006 of P3.9 billion, an increase of 9% from the same period last year.

For the nine months ended September 30, 2006, rental revenues increased by 20% compared to same period in 2005. Cinema ticket sales showed a strong performance of 31% increase due to more blockbuster films in 2006 compared to the same period in 2005 and the huge success of the 2005 Metro Manila Film Festival which extended up to January 2006.
 

Operating expenses increased by 22% from P3.39 billion to P4.13 billion mainly due to the new malls. Income from operations enjoyed a favorable growth of 19% from P4.41 billion for the nine months ended September 30, 2005 to P5.26 billion in the same period 2006.

Gross revenues increased 27% in the third quarter 2006 to P3.30 billion from P2.61 billion in the same quarter 2005. Rental revenues remain the largest portion, with a significant growth of 24% amounting to P2.71 billion from same quarter last year of P2.19 billion.

This is largely due to rentals from new SM Supermalls opened in the second half of 2005 and the year 2006, namely, SM City San Lazaro, SM Supercenter Valenzuela, SM Supercenter Molino, SM City Sta. Rosa, SM City Clark, SM Mall of Asia, SM Supercenter Pasig, The Block at SM North Edsa and SM City Lipa. The new malls opened with a total gross floor area of 1.0 million square meters.

Currently, these new malls have an average occupancy level of 95%. Same store rental growth is at 6%.

SM Prime President, Mr. Hans Sy said, “We are pleased with our results in the third quarter. We look forward to our financial report in the fourth quarter, which is usually our strongest period on account of the holiday season, with Halloween activities ushering in the entry of the Christmas season.�?

SM Prime currently has 27 Supermalls strategically located nationwide with a total gross floor area of 3.6 million square meters.

Last May 21, 2006, the Company opened the Mall of Asia to a huge crowd of close to a million. 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. Other malls opened in 2006 were SM City Sta. Rosa, SM City Clark, SM Supercenter Pasig and SM City Lipa.