More malls, movie receipts hike SM Prime 2011 income

MANILA, Philippines – The year 2011 was good to Henry Sy’s SM Prime Holdings Inc. despite the slower economic growth of the country.

The Philippines’ largest mall operator saw consolidated net income shot up 15% to P9.1 billion from P7.9 billion in 2010, according to a disclosure to the Philippines Stock Exchange on Friday, February 18.

SM Prime attributed its success to growth in the rental sector, which it described as “very-healthy.” Consolidated rental revenues made up the lion’s share of total revenue at 85%. The company’s occupancy rate was a high 97%.

The mall giant was able to offer additional rental space with new malls in Tarlac, San Pablo, Calamba, Novaliches and Masinag.

All told, consolidated rental revenue grew 14% to P22.8 billion in 2011. 

In the disclosure, SM Prime President Hans T. Sy said, “SM Prime’s noteworthy performance in 2011, which was achieved in spite of tempered economic progress, clearly shows that the business formula the company has adopted is resilient and built for sustainable growth.”

SM Prime cited its new malls as well as new energy conservation methods as factors contributing to the boom in profits.

Cinema sales also helped. SM Prime saw a 10% in 2011 ticket sales, which it credited to the major blockbusters, “Transformers 3: Dark of the Moon,” “Praybeyt Benjamin,” “Harry Potter and the Deathly Hallows Part 2,” “No other Woman,” and “Twilight Saga: Breaking Dawn Part 1.”

Hans Sy said the company is even more eager to pursue its growth and expansion plans given the increased optimism about the countries prospects in 2012.

The Sy-led mall operator said it would stand by its target of opening one mall every year in China and 3 to 4 every year in provincial areas of the Philippines.

SM Prime expects to have 46 malls in the Philippines and 5 in China by the end of 2012. – Rappler.com