SM Prime to issue P20-billion shares, 7-year debt

SHOPPING-mall operator SM Prime Holdings Inc. on Tuesday said it filed with the Securities and Exchange Commission (SEC) an application for a permit to sell for the issuance of P20 billion in fixed-rate bonds.

The paper comprised of P15 billion in seven-year series “G” bonds due in 2024 with an oversubscription option of up to P5 billion.

The issuance is part of the company’s P60 billion in shelf registration of fixed-rate bonds approved by the SEC in July last year.

SM Prime earlier said its recurring income grew 14 percent last year to P23.8 billion, from P20.9 billion in the previous year.

Consolidated revenues grew 12 percent to P79.8 billion in 2016, from P71.5 billion in 2015. Overall operating income rose by 12 percent to P35.3 billion in 2016, from P31.4 billion the prior year.

Growth was mostly driven by the continued expansion of its malls, as well as the strong sales take-up of housing units, the company said.

“SM Prime sustained its overall performance in 2016 on the account of focusing more on recurring-income stream complemented by the solid performance of the housing group. SM Prime is well-positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country,” SM Prime President Jeffrey Lim said in a statement.

Mall revenues grew by 9 percent to P48.6 billion, from the previous year’s P44.5 billion, as rentals improved by 10 percent.

The revenue growth was driven by additional retail spaces of 1.5 million square meters of gross floor area added in the past two years.

To date, SM Prime has 60 shopping malls in the Philippines, with 7.7 million sq m in gross floor area and seven in China with 1.3 million sq m.

For 2017, SM Prime will open at least four new malls in the Philippines with an estimated combined 300,000 square meters of additional shopping space.




VG Cabuag

A journalism graduate and has covered the Philippine business beat for more than a decade.