MALAYA - SM Investments Corp. (SM Investments) said profit for the first half
of the year reached P10.9 billion, up 13 percent from last year’s P9.6
billion.
“Earnings growth was driven largely by strong earnings growth of
residential development, banks and the mall operations. Total revenues
grew 14 percent to P105.2 billion from P92 billion as all the core
businesses delivered on their sales targets,” SM Investments said.
“EBITDA rose 12 percent to P24.1 billion for an EBITDA margin of 22.8
percent. In the meantime, return on equity is steady at 14 percent,” it
added.
The banks continued to provide the largest contribution to SM
Investments’ consolidated profit with a 30.9 percent, followed by retail
operations with 28.2 percent. Malls came in third with 24.2 percent
followed by property development with 16.7 percent.
SM Retail reported a 7.8 percent growth in profit at P2.7 billion
from sales growth of 8.3 percent at P73.8 billion. EBITDA was up 11
percent to P4.9 billion for an EBITDA margin of 7 percent. Net margin
was steady at 3.7 percent.
The group which consists of a chain of department stores and a
separate chain of supermarkets and hypermarkets continued to expand its
number of stores nationwide while getting a boost from improved consumer
confidence. For the last twelve months, the number of stores increased
by 35 of which 2 are department stores, 2 are SM Supermarket, 28 are
SaveMore Stores and 7 are SM Hypermarkets. As of end June, SM Retail’s
total number of stores reached 183, consisting of 43 department stores,
34 SM Supermarket, 73 SaveMore Stores and 33 SM Hypermarkets.
“The group continues to expand all of its store formats with
particular focus on the growth of SaveMore stores which has gained very
strong market acceptance. This stand-alone store format which is
patterned after a typical neighborhood grocery store offers greater
convenience in communities where organized retail is lacking. SaveMore
provides fresh food concepts, clean and attractive store layouts, and a
highly diverse yet reliable mix of products and services,” SM
Investments said.
Mall operation SM Prime Holdings, Inc. posted a 15 percent increase
in net income at P4.9 billion from P4.3 billion last year. Revenues
reached P14.6 billion, up 15 percent year-on-year. EBITDA for the period
grew 12 percent to P9.71 billion for an EBITDA margin of 67 percent.
Better growth resulted from the improved performance of the existing
malls both in the Philippines and China with same store sales growing by
8 percent, boosted further by the opening of new malls in 2010 and
2011.
The four malls in China posted a hefty 30 percent growth in revenues
to P1.3 billion and contributed 9 percent to consolidated revenues. In
terms of net income, SM China showed a growth of 52 percent to P321
million, for a net margin of 25 percent and a 7 percent contribution to
SM Prime’s consolidated net income. The average occupancy rate for the
four malls in China is now at 95 percent.
After opening SM City General Santos in South Cotabato last week, SM
Prime now has 45 malls strategically located in the Philippines with a
total gross floor area of 5.5 million square meters. In China, SM
Prime’s malls are located in the cities of Xiamen, Jinjiang, Chengdu and
Suzhou with a total gross floor area of over 600,000 square meters.
Earlier this year, SM Prime opened SM City Olongapo in Zambales, SM City
Consolacion in Cebu and SM City San Fernando in Pampanga. For the rest
of 2012, SM Prime is scheduled to open SM City Lanang in Davao City, and
SM Chongqing in China.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Wednesday, August 15, 2012
Philippine Developer To Build 18 Malls in China As Economy Grows
iREALTYTimes - A shopping mall developer owned by Phillippine magnate Henry Sy plans
on spending $63 million pesos--about $1.5 billion USD--to build a slew
of shopping malls and residential structures in China.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
SM Prime Holdings, the largest retail developer in the Phillippines, will build four to five malls a year, for three years, according to a report by the South China Morning Post.
The expansion would not only sustain company growth, a spokesperson for the company said, but increase it--thanks to China's blooming market and consumer spending powers.
"I am quite positive that we can accelerate our earnings growth," Hans Sy, son of Henry, told media.
New malls in China will also extend its revenue base beyond the 108 million population in the Philippines to the world's fastest-growing major economy.
Essentially, the growing opportunities in China and Hong Kong will help the influx of cash into Phillippines too, since many Phillipino work in China and Hong Kong, sending most of their salary back home.
Other developers are joining suit. CapitaLand, Southeast Asia's biggest property firm, said last week that its retail unit was building its first shopping centre in Qingdao, adding to its 58 malls in China, of which 15 are under development.
"We want to still acquire more shopping mall projects," CEO Liew Mun Leong told the Post. "That will be a large part of our appetite."
The plan for SM Prime is to focus on lower middle class cities such as Zibo--areas that are not as affluent as, say, Beijing. The company plans to open a mall in Chongqing by the end of this year.
Meanwhile, SM Prime will also build more malls in its native country. But that will come after the Chinese expansion--and the money it will bring.
SM Prime said it would fund the expansion with a mix of cash from operations and debt.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
Wednesday, August 8, 2012
Highlands nets P16.4m
Manila Standard - Leisure property developer Highlands Prime Inc. is back on the black,
posting a net income in the first half of the year on higher revenues
from real estate sales.
Highlands Prime said in a financial report filed with the Philippine Stock Exchange that net profit reached P16.4 million, a reversal from a P27.8-million loss year-on-year.
Highlands Prime said total realized revenues rose 61 percent to P254.6 million from P158 million on year.
“The realized revenues for the current period were better due to the contribution of the residential lot projects, which accounted for 58 percent of the total realized revenues. Condominium and log cabin projects contributed 42 percent of the total,” Highlands Prime said.
The property company has two projects under construction, namely Woodridge Place phase 2 and Sierra Lago.
Woodbridge Place phase 2 is a condominium project at Tagaytay Highlands, while Sierra Lago is a subdivision development at Tagaytay Midlands.
Highlands Prime said in a financial report filed with the Philippine Stock Exchange that net profit reached P16.4 million, a reversal from a P27.8-million loss year-on-year.
Highlands Prime said total realized revenues rose 61 percent to P254.6 million from P158 million on year.
“The realized revenues for the current period were better due to the contribution of the residential lot projects, which accounted for 58 percent of the total realized revenues. Condominium and log cabin projects contributed 42 percent of the total,” Highlands Prime said.
The property company has two projects under construction, namely Woodridge Place phase 2 and Sierra Lago.
Woodbridge Place phase 2 is a condominium project at Tagaytay Highlands, while Sierra Lago is a subdivision development at Tagaytay Midlands.
For more details on Woodbridge Place, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308
/ 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Sunday, August 5, 2012
SM Prime completes 2012 fund-raising
MALL OPERATOR SM Prime Holdings, Inc. has completed its financing requirements for the year amounting to P21 billion, signaling its preparation to spend a further P63 billion in the next three years for expansion here and overseas.
“2012 [fund-raising is] done already. For next year, we will know by
[the first quarter] how much we need to raise,” Jeffrey C. Lim, SM Prime
executive vice-president and chief financial officer, told BusinessWorld in a text message.
Previously, SM Prime said it was allocating P21 billion for capital
expenditure this year, of which P14 billion is intended to fund projects
in the Philippines while P7 billion will be funneled for those in
China.
The capex was supposed to be sourced from a mix of debt and internally-generated funds.
Last May, the firm announced that it had raised P7.5 billion in fresh
funds from the issuance of fixed-rate and floating-rate notes, which
were reportedly snapped up by institutional investors.
SM Prime told the stock exchange last week that moving forward, it was
earmarking an estimated P63 billion to bankroll the construction of four
to five malls in the Philippines, and one mall in China.
“We will raise funding yearly for this,” Mr. Lim said.
SM Prime, however, has yet to determine whether it will tap the equities or bond market for future capex requirements.
“We will have to wait until next year,” Mr. Lim said.
SM Prime was incorporated in 1994 to take charge of the SM group’s
commercial shopping centers and related businesses. This year, SM Prime
aims to have a mall portfolio of 46 Philippine malls and five China
malls, with an estimated combined gross floor area of 6.3 million square
meters.
The Sy-led company is eyeing as much as seven new properties in China
for mall expansions as the firm exploits higher consumer spending there.
SM Prime hiked its January-to-June net income by 15.22% to P4.92 billion
due to its new malls and robust sales, earlier reports show.
Shares of SM Prime dropped by 1.85% to P13.80 last Friday from P14.06 at its previous close.
For latest update on real estate development and its RA 9646, the Real Estate Service Act of 2009, visit www.ra9646.com.
Belle profit down 11%
MANILA, Philippines—Property and gaming firm Belle Corp. posted an
11-percent year-on-year decline in its six-month net profit to P90.5
million due to lower real estate revenues.
Gross revenue declined by 38 percent to P222.6 million year on year in the first semester as it booked lower revenues from the sale of real estate and club shares (P192.11 million compared to P338.87 million last year). Gross profit also fell by 34 percent to P141.9 million.
The company has been devoting significant resources to development activities connected with its integrated resort project in Parañaque City, which is targeted for opening next year, the company told the Philippine Stock Exchange on Friday.
Total operating expenses increased by 11 percent to P112 million in the first half due to higher administrative expenses.
The company’s equitized net earnings from associated companies rose by 22 percent to P74.3 million from a year ago mainly due to the contribution of Pacific Online Systems Corp., where it owns a 35-percent stake.
Pacific Online—which leases online equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao—contributed P67 million in equitized earnings to Belle. This was lower than its P69.3 million contribution a year ago.
Belle, which is part of the main-share PSEi, has a market capitalization of P51.74 billion based on its closing price of P4.90 per share on Friday.
Gross revenue declined by 38 percent to P222.6 million year on year in the first semester as it booked lower revenues from the sale of real estate and club shares (P192.11 million compared to P338.87 million last year). Gross profit also fell by 34 percent to P141.9 million.
The company has been devoting significant resources to development activities connected with its integrated resort project in Parañaque City, which is targeted for opening next year, the company told the Philippine Stock Exchange on Friday.
Total operating expenses increased by 11 percent to P112 million in the first half due to higher administrative expenses.
The company’s equitized net earnings from associated companies rose by 22 percent to P74.3 million from a year ago mainly due to the contribution of Pacific Online Systems Corp., where it owns a 35-percent stake.
Pacific Online—which leases online equipment to the Philippine Charity Sweepstakes Office for lottery operations in Visayas and Mindanao—contributed P67 million in equitized earnings to Belle. This was lower than its P69.3 million contribution a year ago.
Belle, which is part of the main-share PSEi, has a market capitalization of P51.74 billion based on its closing price of P4.90 per share on Friday.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Friday, August 3, 2012
Green Residences to rise on Taft
Soon to be one of the tallest buildings along Taft Avenue, Green
Residences is the ideal home for students looking for a well-secured
place complete with five-star amenities to help them focus more on their
studies.
The 50-storey tower features a Sky Lounge that houses a study hall, swimming pool, game room, gym, and function rooms aside from a commercial area where residents can easily go for their daily necessities. It is conveniently located near major schools like De La Salle University (DLSU) and St. Scholastica’s College.
“Aside from offering a secure environment, we have built Green Residences to be a place that balances both study and leisure for students,” said SMDC’s Vice chairman and chief executive officer Henry Sy, Jr.
One of the biggest real estate developers in the country, SMDC is known for offering five-star homes in prime locations. Green Residences is within walking distance to two LRT stations—Quirino and Vito Cruz. Green Residences will soon rise along Taft avenue across De La Salle University and near other universities around the area.
The 50-storey tower features a Sky Lounge that houses a study hall, swimming pool, game room, gym, and function rooms aside from a commercial area where residents can easily go for their daily necessities. It is conveniently located near major schools like De La Salle University (DLSU) and St. Scholastica’s College.
“Aside from offering a secure environment, we have built Green Residences to be a place that balances both study and leisure for students,” said SMDC’s Vice chairman and chief executive officer Henry Sy, Jr.
One of the biggest real estate developers in the country, SMDC is known for offering five-star homes in prime locations. Green Residences is within walking distance to two LRT stations—Quirino and Vito Cruz. Green Residences will soon rise along Taft avenue across De La Salle University and near other universities around the area.
For more details on Green Residences, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308
/ 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
SMDC net income up 38% to P2.7B in H1
Residential property developer SM Development Corp. grew its
first-semester consolidated net income by 38 percent year on year to
P2.7 billion on the back of a strong expansion in real estate revenues.
Six-month revenues from real estate rose by 73.6 percent to P11.9 billion while net income from real estate, not counting other income, went up by 31.8 percent to P2.51 billion over the same period.
In a disclosure to the Philippine Stock Exchange, SMDC’s first-half home sales jumped by 85 percent to P19.8 billion year on year. Correspondingly, the number of units sold rose sharply by 72 percent to 8,007 from only 4,655 units during same period last year.
“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience. SMDC’s residential condominiums are being designed and developed to cater to the Filipino’s growing need for privacy, sophistication and greater access to retail and home-related services which offer greater convenience and time for families to live a more balanced life,” SMDC chief executive officer Henry Sy Jr. said in a press statement.
Case flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 32.6 percent year on year to P2.97 billion, translating to an Ebitda margin of 25 percent.
Most of the units sold by SMDC in the first half were from Shell Residences located at Mall of Asia Complex, Green Residences along Taft Avenue near De La Salle University, Jazz Residences in Makati, Light Residences on EDSA near Boni Avenue., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA.
At present, SMDC has a total of 16 projects under construction. It plans to break ground for five more projects in the second half of the year.
For more details on SMDC projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.
Six-month revenues from real estate rose by 73.6 percent to P11.9 billion while net income from real estate, not counting other income, went up by 31.8 percent to P2.51 billion over the same period.
In a disclosure to the Philippine Stock Exchange, SMDC’s first-half home sales jumped by 85 percent to P19.8 billion year on year. Correspondingly, the number of units sold rose sharply by 72 percent to 8,007 from only 4,655 units during same period last year.
“We are highly gratified by the warm response that the market continues to give to SMDC’s products. Our homebuyers encourage all of us to work even harder to match their expectations or even exceed them in terms of quality, lifestyle and convenience. SMDC’s residential condominiums are being designed and developed to cater to the Filipino’s growing need for privacy, sophistication and greater access to retail and home-related services which offer greater convenience and time for families to live a more balanced life,” SMDC chief executive officer Henry Sy Jr. said in a press statement.
Case flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 32.6 percent year on year to P2.97 billion, translating to an Ebitda margin of 25 percent.
Most of the units sold by SMDC in the first half were from Shell Residences located at Mall of Asia Complex, Green Residences along Taft Avenue near De La Salle University, Jazz Residences in Makati, Light Residences on EDSA near Boni Avenue., Sun Residences in Quezon City’s Welcome Rotunda, Wind Residences in Tagaytay and Grass Residences beside SM North EDSA.
At present, SMDC has a total of 16 projects under construction. It plans to break ground for five more projects in the second half of the year.
For more details on SMDC projects, you may e-mail reby_ramirez@yahoo.com or contact her at 0922.883.9308 / 0916.4044.555 / 0919.699.3572 / 4044-534.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
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