Thursday, February 18, 2010
SM Investor Relations
(18 February 2010. Pasay City, Philippines.) SM Prime Holdings, Inc. (SM Prime), the Philippines’ dominant shopping mall developer and operator, reported a consolidated net income of Php7.0 billion from January to December 2009, as compared to Php6.4 billion in
2008 for a growth of 10%. Revenues, on the other hand, grew by 15% to Php20.5 billion in 2009, while EBITDA (earnings before interest, taxes, depreciation and amortization) grew 14% to Php14.0 billion, for an EBITDA margin of 68%. These results include the operations of the three SM malls in China, which 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, "Due to the continued support and patronage of our customers, SM Prime again met its targets for 2009 despite the challenges brought about by the global recession and a series of natural calamities that affected most of Luzon in the latter part of the year. I would also like to note the dedication and tenacity of our employees and tenants who rose to the occasion when help was most needed during the height of the calamities. We express our sincere appreciation to them and all our stakeholders for another rewarding year."
Rental fees, which accounted for 86% of total revenues, reached Php17.7 billion, for a 15% increase year-on-year. Growth was driven mainly by new malls and the expansion of existing malls, although same store sales also grew 5%. For full-year 2009, SM Prime opened SM City Naga in Camarines Sur, SM Center Las Piñas in Metro Manila, and SM City Rosario in Cavite. It also expanded SM City Rosales in Pangasinan, SM City Fairview, and SM North EDSA through its Sky Garden. The Sky Garden further reinforced the dominant position of SM North EDSA as it emerged as the largest mall in the Philippines.
Combined, the new malls and expansions in 2009 added 226,000 square meters (sqm) to the company’s total gross floor area (GFA), bringing it to 4.5 million sqm, for a 5% increase.
Operating expenses for full year 2009 increased 19%, to Php9.7 billion, largely due to expenses related to mall expansion. Income from operations posted a 12% growth from Php9.6 billion in 2008 to Php10.8 billion in 2009.
For 2010, SM Prime plans to open SM City Novaliches in Quezon City; SM City Tarlac; SM Supercenter Masinag in Antipolo City, Rizal; and SM City Calamba and SM Supercenter San Pablo, both of which will be in the province of Laguna. SM Prime is also scheduled to open SM Suzhou in fourth quarter, its fourth mall in China, which is located in the province of Jiangsu. SM Suzhou will have a GFA of approximately 70,000 sqm.
By the end of 2010, SM Prime will have 41 malls in the Philippines, of which 16 are in Metro Manila, and the others are spread out nationwide. The 41 malls will have an estimated combined GFA of 4.8 million sqm. by the end of the year.
For further inquiries:
Mr. Jeffrey C. Lim
Executive Vice President
SM Prime Holdings, Inc.
Tel. no.: 831.1000 loc. 1401