SM Prime mall expansion boosts Q3 earnings

More leasing space and higher revenues buoyed SM Prime Holdings Inc. earnings in the third quarter, the retail giant said in a statement Thursday. Its net income in July to September rose 15 percent to P2.14 billion from P1.86 billion as revenues grew 15 percent to P6.56 billion, SM Prime, operator of SM shopping malls told the Philippine Stock Exchange. "The company's better than expected results may be attributable to last year's… expansion, which added 289,000 square meters (sqm) in net leasable space. The four new SM malls that opened last year are SM City Calamba, SM City Novaliches, SM City Tarlac, and SM City San Pablo. On top of this, same-store rental grew 7 percent during the period," SM Prime said. For the first nine months of the year, SM Prime said its net income jumped 14 percent to P6.41 billion from P5.62 billion as consolidated revenues rose 13 percent to P19.27 billion. "The notable results delivered by SM Prime so far this year give us greater confidence in attaining our full-year target for both the Philippines and China, especially since we are moving towards the holiday season. We will continue to offer good value products and services to our customers, and improve on areas that will give an even more enhanced shopping and entertainment experience to them," said SM Prime president Hans SY. Operating expenses, on the other hand, rose 12 percent to P9.12 billion. Earlier this year, SM Prime inaugurated SM City Masinag in Antipolo City and SM City Suzhou in China. For the rest of 2011, SM Prime is scheduled to open SM City San Fernando in Pampanga, SM City Olongapo in Zambales, and SM Marketmall in Dasmariñas, Cavite. The company is also set to expand two of its existing malls, namely SM City Davao in Southern Mindanao and SM City Dasmariñas in Cavite. By year-end, SM Prime will have 48 malls in the Philippines and in China with an estimated combined gross floor area of 5.9 million sqm. — CMA/VS, GMA News