SM Prime 2012 profit up on strong rental income

MANILA, Philippines – The mall developer of the country’s richest man Henry Sy posted better earnings in 2012 as its local shopping centers continued to enjoy strong rental income, while malls in China provided a boost.

In a disclosure to the Philippine Stock Exchange on Monday, February 18, SM Prime Holdings Inc. said its net income grew 16% in 2012 to P10.53 billion from P9.1 billion in 2011, “exceeding” target.

Total revenues for the year, on the other hand, rose 14% to P30.73 billion.

These results included the operations of the company’s 5 SM malls in China, particularly in the cities of Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing.

“We are confident that the Philippine growth story, which we saw unfold last year, will continue in 2013. In line with this, we will proceed with our aggressive expansion plans and continue to pursue new opportunities for growth,” said company President Hans Sy.

SM Prime is the Philippines’ largest mall developer and operator. It is expected to have 48 malls in the Philippines and 5 in China with estimated gross floor area of 6.7 million square meters by the end of 2013.

Here are the details of SM Prime’s financial report:

• Net income of SM malls in China rise 24% to P1.10 billion in 2012 from P890 million in 2011.
• Of total revenues, rental revenues contributed 84%, growing 14% to P25.90 billion.
• Operating expenses went up 14% to P13.99 billion, largely due to expenses related to mall expansion.
• Income from operations rise 14% to P14.62 billion from P16.73 billion in 2011.
• Cinema ticket sales up 14% due to a series of blockbuster movies.

– Rappler.com