SM Prime Holdings, Inc.

...mall na naman Tongue

SM Prime opens shopping mall in Legazpi City

IN A statement issued Tuesday, the Sy-led mall operator and property developer said SM City Legazpi will open its doors on Sept. 14. Located along Imeda Roces Avenue in Albay, the mall will have a total gross floor area of almost 88,000 square meters (sq.m.) and will be the company’s second mall in Bicol following SM City Naga in Camarines Sur.

“SM Prime joins the City of Legazpi in bringing fun and adventure to the picturesque province of Albay with the opening of SM City Legazpi… Together with SM City Naga in Camarines Sur, this new lifestyle destination in Bicolandia will elevate the malling experience of both the locals and tourists with offerings from top local and global brands,” SM Prime President Jeffrey C. Lim said in a statement.

The three-storey mall will open with 85% of its leasable space already taken up by a mix of shopping, dining, and entertainment concepts. Tenants will include The SM Store, SM Supermarket, SM Appliance Center, Ace Hardware, Our Home, Watsons, Surplus, Sports Central, Bata Shoes, Miniso, The Body Shop, Uniqlo, and Banco de Oro.

The mall will also feature a food hall with a view of Mayon Volcano, six SM Cinemas, and SM Cyberzone.

The listed firm chose to locate in Legazpi City as it is considered Bicol’s center for tourism, education, health services, commerce, and transportation. SM Prime also noted Legazpi, with a population of more than 200,000 people, is one of the top provincial cities with remittances from overseas Filipino workers.

SM City Legazpi is the fourth mall that SM Prime will be opening this year, after SM Center Imus in Cavite, SM City Urdaneta Central in Pangasinan, and SM City Telabastagan in Pampanga. This will bring the company’s total mall count to 71.

SM Prime will open SM Center Ormoc in Leyte in the fourth quarter, bringing its total to 72 stores across 9.6 million sq.m. by end-2018. The expansion is part of the company’s goal to have 10.8 million sq.m. of gross floor area across all its shopping malls by 2022, with around 86% located in the Philippines and the balance to be seen in China.

The company generated a net income of P16.62 billion in the first six months of 2018, 16% higher year-on-year as consolidated revenues likewise grew 15% to P49.77 billion for the period.



...magaling talaga ang grupo ni Henry Sy Smile

SM Prime leases out 97% of yet-to-open office building

SM PRIME Holdings, Inc. will be unveiling its newest office building in the Mall of Asia complex in Pasay City this Friday, alongside the topping off of its other office project in the area.

The listed property developer and mall operator said in a statement on Wednesday that it would launch ThreeE-Com Center, opening with 97% of its 114,000-square meter floor area leased out.

At the same time, the Sy-led firm will hold the topping off ceremony for FourE-Com Center, which is slated to be its largest office building to date with a gross floor area (GFA) of 190,000 sq.m.

“The launching of ThreeE-Com Center and the topping off of FourE-Com Center mark another milestone for SM Prime as these uniquely designed business centers add to the already captivating architectural landscape in the Mall of Asia Complex, as well as offering ample office space suitable for the growing needs of the outsourcing industry and other businesses,” SM Prime President Jeffrey C. Lim said in a statement.

Located at the corner of Harbor Drive and Bay Shore in the MOA complex, ThreeE-Com Center is a 15-storey twin-tower development accredited by the Philippine Economic Zone Authority. Its office spaces are located from the fifth to 15th floors, with the second to fourth levels dedicated for podium parking.

The project will also house retail establishments like Alfa Mart, Starbucks, Tim Hortons, Mei Yu Restaurant, and a BDO bank on the ground level.

ThreeE-Com Center carries a Gold certification in Leadership in Energy and Environmental Design (LEED), indicating that its facilities are environmentally friendly.

The opening of ThreeE-Com Center will bring SM Prime’s total GFA to around 595,000 sq.m., as it currently operates 10 office buildings situated across Makati, Pasay, Quezon City, Taguig, Clark in Pampanga, Taytay in Rizal, and Sta. Rosa in Laguna.

Meanwhile, FourE-Com Center will feature three towers with 15 storeys each. It offers a 3,000 sq.m. floor plate which is the typical demand for various companies, primarily technology-based ones.

The project boasts of a crystal-like design, and is in the process of getting certification for LEED standards as well. SM Prime expects to open the building in 2019.

The E-Com Center projects form part of SM Prime’s Commercial Properties Group, which handles the development and leasing of office buildings in the country. The company’s core business is in the development of malls, 71 of which are located in the Philippines and seven more in China.

SM Prime grew its net income by 16% to P16.62 billion in the first half of 2018, driven by the provincial expansion of its mall business as well as higher demand for residential properties. Revenues also picked up 15% to P49.77 billion during the period.



...projection for 3rd QTR earnings is good

SM Prime upbeat on third quarter earnings

MANILA, Philippines — SM Prime Holdings Inc. (SMPH) said its third quarter net income remains strong despite spiraling inflation and rising interest rates.

“It’s still okay. We have not yet seen the impact of the inflation numbers,” SMPH president Jeffrey Lim said when asked about the company’s third quarter performance.

He said preliminary data shows that the numbers are still within target.

For the fourth quarter, Lim said consumer spending would likely remain strong due to holiday spending.

Inflation grew 6.7 percent in September, a nine-month high amid surging oil prices, a trade war between US and China, and various supply-related issues in the local market.

Interest rates, likewise, have gone up with the Bangko Sentral ng Pilipinas (BSP) raising rates by 50 basis points in its latest meeting last month.

Lim said higher interest rates – which would push borrowing costs higher – might not necessarily affect SM Prime’s property business, or at least not yet, as the Chinese market continues to push demand for residential projects.

SM Prime develops malls, hotels and other commercial projects as well as residential developments.

In the first half, the company reported a 16 percent jump in net income to P16.62 billion. Revenues rose 15 percent to P49.77 billion, while operating income increased by 16 percent to P23.36 billion.

Lim said the company’s expansion in various provincial areas supported growth.

SM Prime plans to put up more integrated developments in the coming years anchored by lifestyle malls, luxurious yet affordable residences, and other complementary amenities across the country.

Accounting for 58 percent of SM Prime’s consolidated revenues, malls contributed P28.71 billion in revenues.

Mall operating income increased by 12 percent to P15.9 billion.

At present, SM Prime has 77 malls, of which 70 are in the Philippines and seven are in China.

SM Development Corp., the primary residential unit of SM Prime, meanwhile, recorded a 25 percent increase in reservation sales to P34.45 billion in the first semester.


10-23! Tongue

SM Prime net earnings jump 20% in 3rd quarter

SM PRIME Holdings, Inc. expanded its earnings by a fifth during the third quarter of 2018, driven by the double-digit growth across its shopping mall and residential businesses.

In a statement issued Monday, the property business of country’s richest man Henry Sy, Sr. posted a net income of P6.82 billion in the July to September period, 20% higher than the P5.66 billion it generated in the same period a year ago. This followed a 16% uptick in revenues to P24.79 billion.

On a nine-month basis, SM Prime’s net income climbed 17% to P23.44 billion, after a 16% surge in revenues to P34.91 billion.

“SM Prime’s continuous growth as reflected in our first nine-month report shows the results of our strategic expansion in various developing cities in the country,” SM Prime President Jeffrey C. Lim was quoted as saying in a statement.

The listed firm’s shopping mall business contributed 58% to its revenues, while the residential unit provided 34%. Other businesses such as offices and hotels accounted for the remaining eight percent.

Mall revenues went up 12% to P43.26 billion, boosted by the performance of new malls opened mostly in the provinces from 2016 to 2018. Same-mall sales growth increased by eight percent, pushing mall rental revenues 12% higher to P36.83 billion.

Cinema and event ticket sales rose by 17% to P3.92 billion, following higher gross box office receipts from blockbuster movies such as Avengers: Infinity War, The Hows of Us, Black Panther, and The Nun.

With this, mall operating income expanded by 12% to P23.97 billion, with operating income margin at 55%.

SM Prime ended the nine-month period with 78 malls, seven of which are in China. The company will launch one more mall, SM Center Ormoc in Leyte, as well as Luxe Duty Free in the Mall of Asia complex, before the year ends.

For its residential business, SM Prime recorded a 23% uptick in revenues to P25.26 billion, while operating income booked a 34% increase to P8.29 billion.

SM Development Corp. (SMDC) attributed the increase to higher construction accomplishments for projects launched from 2015 to 2017, including Shore 2, Fame, South, Spring, Shore 3, and S Residences in different parts of Metro Manila.

Reservation sales at SMDC improved by 25% to P52.80 billion, indicating a 15% increase in number of units sold to 14,698 units during the period.

SMDC also noted the higher demand for their projects coming from international buyers, overseas Filipino workers, as well as the emerging middle class.

The Commercial Properties Group (CPG) and SM Hotels and Conventions Centers (SMHCC) generated combined revenues of P6.17 billion, seven percent higher year-on-year. Operating income accordingly went up seven percent to P2.89 billion.

SM Prime’s CPG unit currently operates 11 office buildings, covering a gross floor area of almost 623,000 square meters. Meanwhile, SMHCC has more than 1,500 rooms, four convention centers, and three trade halls under its portfolio.

“Through the solid performances of our core businesses, we are positive that we will deliver the net income growth we committed when we integrated five years ago. We intend to keep this growth trajectory to enrich more lives in the communities that we serve and deliver more sustainable integrated developments for the betterment of our country,” Mr. Lim said.



SM Prime upbeat on mall business

SM Prime Holdings, Inc. remains upbeat on its shopping mall business, noting that the country is not facing an oversupply of malls yet.

SM Supermalls Chief Operating Officer Steven Tan called the retail sector “very vibrant,” citing the shopping mall’s shift to being a more experiential place.

“It’s more exciting now more than ever. I was asked if there was a surplus already, but no we’re still enjoying. For example, SM North EDSA is 99% occupied. I don’t really see that as it poses a threat or a problem,” Mr. Tan said in an Dec. 7 interview on the sidelines of the opening of the North Towers, a new segment of the company’s SM North EDSA mall in Quezon City.

For instance, Mr. Tan said the company included an “experience zone” in the newly-opened North Towers to give shoppers a place to hang out.

“It’s not your usual mall where people go shopping, it’s really more like hanging out. There’s a lot of restaurants, we created an experience zone, lots of games,” Mr. Tan explained.

North Towers is an expansion of SM North EDSA, making it the country’s second largest mall next to SM Mall of Asia. It is one of the 72 SM malls in the Philippines, the latest of which is located in Eastern Visayas called SM Center Ormoc. The company also has seven malls in China.

The property unit of country’s richest man Henry Sy, Sr. plans to end the year with 9.6 million square meters of retail space across its local malls. By 2019, the company targets to have 10.5 million sq.m. of gross floor area in the country, further increasing it to 10.8 million sq.m. in 2020.

The listed firm’s expansion is now geared toward the provinces, as it seeks to take advantage of the economic growth opportunities in the regions.

“Our expansion program should allow us to sustain double-digit growth over the next three years. The growth will be driven by malls and residential operations complemented by our other businesses,” the company said in a presentation posted on its website.

SM Prime’s shopping mall unit contributed 58% of its revenues in the first nine months of 2018, following by the residential business at 34%.

The company booked a net income attributable to the parent of P23.44 billion in the first nine months of 2018, 17% higher than the P20.05 billion it made in the same period a year ago. Gross revenues meanwhile went up 15% to P74.56 billion during the nine-month period.



PSEi sinks by 2% in morning trade led by AC, SM Prime

Share prices on the Philippine Stock Exchange (PSE) plunged during the morning session Wednesday, led by heavyweights SM Prime Holdings Corp. and companies related to the holding firm Ayala Corp.

The benchmark PSEi was down 160.53 points or 2.00 percent at 8,852.89 by the noon recess. The broader All Shares was down 72.80 points or 1.52 percent at 4,715.82.

The plunge was led by Ayala Corp. (AC), the holding company of the Ayala Group of Companies, said Aniceto Pangan, equities trader at Diversified Securities Inc.

“The PSEi declined this morning, brought about by news of the private placement on Ayala Corporation, as Mitsubishi Corp. sold 13.0 million shares of Ayala Corp. through a private placement last night at P900 per share, a 7.83 percent discount,” said Christopher San Pedro, equities trader at  Unicapital Securities Inc.

The Ayala group has interests in real estate and hotels, financial services, telecommunications, and infrastructure, among other businesses.

On top of that, another PSEi heavyweight, SM Prime Holdings Inc., added to the selling pressure, San Pedro noted. “The news on the recommendation of the DILG Secretary Año to scrap the Manila Bay reclamation projects also contributed to the decline of index heavyweight SMPH.”

“Para sa akin, ‘di na dapat matuloy ang reclamation [projects sa Manila Bay]. Lalo lang darami ang tao, ang mga establishment ... lalong mababarhan ang tubig. Paano ‘yung cleanup kung dadagdagan mo ang problema?,” Año said.

It was not a formal recommendation of DILG chief Eduardo Año, but market players took it as an opportunity to sell, market sources said.
SM Prime Holdings Inc. declined by P2.35 or 5.91 percent to P37.40 per share, from the previous close of P39.75 on Tuesday. SMPH accounts for 8.82 percent of the PSEi.

AC lost P46.00 or 4.74 percent to P924.50 at the close of the morning session. AC accounts for 6.60 percent of the PSEi.

Shares of Ayala Land Inc. fell by P1.35 or 3 percent to P43.65. BPI was down P0.85 or 0.91 percent at P92.9. Globe telecom was down P38.00 or 1.82 percent at P2,048.00.

Japanese firm Mitsubshi Corp. sold some 13 million shares of Ayala Corp. at P900 per share, a discount of 7.83 percent.

“They sold 13 million shares at a price of P900 per share. The price yesterday was around P970.50, so it’s undergoing correction right now …” Pangan noted.

Ayala Land Inc., accounts for 8.85 percent of the PSEi, while Bank of the Philippine Islands accounts for 5.29 percent, and Globe for 1.58 percent.



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