SM Prime Holdings, Inc., the Philippines’ leading integrated property company, reported a 13 percent growth in net income to P6.6 billion in the first quarter of 2017 from P5.8 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, SM Prime said “this was on the back of a 12 percent growth in consolidated revenues to P20.5 billion from P18.2 billion in the first quarter of 2016.
Overall operating income increased by 14 percent to P9.6 billion from P8.4 billion in the same period last year largely due to rental revenues from mall expansions in the past two years as well as higher real estate sales and construction accomplishments of residential projects since 2014.
“Our strong performance in the first quarter gives us high confidence that we are on track to meet our growth targets in terms of revenues and income for the full year,” SM Prime President Jeffrey Lim said.
He noted that, “as we continue our strategic rollout of projects across our properties, we are optimistic that our growth will be sustained by the overall expansion of the Philippine economy.”
In the first quarter of the year, SM Prime’s overall mall revenues, which accounted for 62 percent of consolidated revenues, went up by 11 percent to P12.7 billion from P11.4 billion last year.
Mall rentals grew by 10 percent to P10.7 billion from P9.7 billion driven by the additional retail spaces of 1.1 million square meters (sqm) of gross floor area (GFA) added since 2015. Excluding the new malls and expansion, same-mall-sales grew by 7 percent.
Cinema and event ticket sales increased 16 percent to P1.23 billion from P1.06 billion due to higher international movie and event ticket sales.
Revenues from amusement and merchandise sales jumped 27 percent to P763 million from P602 million on the back of improvement on merchandise sales and new amusement centers in the company’s newer malls.
SM Prime’s residential group posted a 6 percent growth in revenues to P6.0 billion from P5.6 billion in the same period last year. The residential group contributed 29 percent of the overall revenues.
Revenue growth can be traced to the construction accomplishments of SM Development Corporation (SMDC) projects launched from 2014 to 2015.
SMDC’s reservation sales surged by 52 percent to P12.3 billion from P8.1 billion in the first quarter of the year. This translates to a 35 percent improvement in unit sales to 3,988 units from 2,949 units.

retrieved from
http://business.mb.com.ph/2017/05/05/sm-prime-boosts-q1-profit-to-p6-6-b/business.mb.com.ph/2017/05/05/sm-prime-boosts-q1-profit-to-p6-6-b/

MANILA, Philippines -  SM Prime Holdings Inc., the listed property company of the Sy family, is launching its first subdivision in Mabalacat, Pampanga next month, with the initial phase targeted for the lower income segment.
In a briefing following the company’s annual stockholders meeting yesterday, SM Prime president Jeffrey Lim said they decided to go into this segment because of the strong demand.
The first subdivision, called Cheerful Residences, will rise on a 30-hectare property with the first phase covering 1,100 house and lot units valued at about P1.4 billion. Unit prices will range from P1.8 million to P2.5 million.


Depending on the demand, the company may expand the project by another 30 hectares to bring total housing units to as many as 5,000.
At the same time, SM Prime announced it was spending at least P50 billion per year over the next two years to support its developmental goals. Of the total, 80 percent will go to project developments, mostly for mall and residential development. The remainder will be used for land banking.
“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” Lim said.
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For the malls, SM Prime is scheduled to open five, all outside Metro Manila.  These include SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.
By the end of 2017, SM Prime will have 65 malls in the Philippines and seven malls in China with an estimated combined gross floor area of 9.2 million square meters.
In the Philippines, 43 percent of the company’s malls are located in Metro Manila, 35 percent in Luzon outside Metro Manila, 14 percent in Visayas and eight percent in Mindanao.

retrieved from
http://www.philstar.com/business/2017/04/26/1693848/sm-prime-ventures-residential-development

SMDC is going horizontal as it prepares to launch subdivisions
MANILA -

​Henry Sy Jr., the eldest son of SM Group founder Henry Sy Sr., said SM Development Corporation (SMDC) could launch the first SM subdivisions in Cavite, Pampanga and Bulacan this year, as the mall and real estate developer ventures into horizontal projects for the first time.
Sy said they are "testing the markets with projects of a few hundred hectares each."
He said the house and lots will follow their current style of "5-star affordable, with lot sizes of as low as 35 square meters." If it proves feasible, Sy said they will launch full-scale.
Sy said they want to expand the range of their real estate developments, not because they have too many condominiums, but because the market in the Philippines remains very big.
Interestingly enough, based on SM Prime's 2015 annual report, SMDC has more condominiums than SM Prime Philippine malls have parking slots.
But Sy insists there has been no slackening of demand for condominiums.
While Ayala Land has a target of 6,000 rooms for its Seda Hotel business by 2020, Sy said SM Prime Holdings is not prioritizing hospitality, because there isn't enough infrastructure to support an aggressive expansion in the hotel and tourism business.
Sy said, "Look at our airports and our roads, there is still too much to be done. Office space is better than tourism for us."
He said the SM Group will stay "more prudent" when it comes to infrastructure projects, as they do not want to build railways or roads. They only want to develop properties along new roads and railways.

SM Development Corporation (SMDC) is set to bring attainable luxury living, this time more aggressively in the provinces as it expands its product offering to include economic housing.
With the government reviving development in the regions, SMDC, the housing arm of SM Prime Holdings, Inc. is aligning to help narrow the huge gap in the Philippine housing sector with a reported backlog of over 5.5 million today according to the Housing and Urban Development Coordinating Council (HUDCC).
“We would like to offer the cosmopolitan lifestyle to as many Filipinos to allow them to live in lifestyle districts anchored on the synergies of SM’s property developments,” SMDC Executive Vice President Jose Mari Banzon said.
SMDC is expected to launch its first economic housing project in Central Luzon in 2017. This gated development will offer house and lots, well-appointed amenities,  a commercial development right beside it.
To help address the gap, SMDC is also focusing on building medium-rise buildings (MRBs) outside Metro Manila. These planned MRB developments are mostly located in SM’s mall complexes that give residents the utmost convenience with a supermarket, department store and other dining and entertainment venues next door.
“The key is to make our offerings as affordable as possible and at the same time, give our residents luxury-like living in all our developments,” Mr. Banzon said.
Last October, SMDC launched Vine Residences, located within the complex of SM City Novaliches. The condominium project has a central park with sunken gardens, swimming pools, a Nature’s Park and a camp site.
This fourth quarter, SMDC launchedits very first MRB project outside of Metro Manila, Cheer Residences within the SM City Marilao complex in Bulacan.
SMDC’s condominiums offer access to lifestyle centers anchored on SM’s malls that tap into the group’s heritage in retail, and also provide access to offices, meeting and entertainment venues.
“The market remains huge especially in the affordable segment. SMDC’s main strength is its ability to make good its promise to deliver homes in prime locations,” Mr. Banzon said.
Over the last 10 years, SMDC has emerged as a leading residential condominium developer,known to deliver residential projects in prime locations with five-star amenities.
Prior to the aggressive entry of SMDC into the housing market in 2007, Mr. Henry Sy Jr., the eldest son of businessman Henry Sy, had a vision to make housing more affordable for Filipinos without sacrificing quality. This gave birth to SMDC’s aggressive move into vertical housing development. In just 10 years, SMDC was able to launch a total of 28 projects, and has sold more than 83,000 units. tack with housing projects in the provinces