SM Prime market capitalization breaches historic P1-trillion mark

0
12

SM Prime Holdings Inc., the shopping-mall operator and the property-development firm of the Sy family, becomes the first Philippine company to reach P1 trillion in market capitalization on Monday on the back of favorable market outlook.

“SM Prime acknowledges the investment community’s unwavering support. This is a great moment for us to share this success as we continue to deliver our commitment to our shareholders,” SM Prime said in a statement.

The historic market-capitalization record was reached after the Sy family integrated all of its major property businesses under SM Prime in 2013.

“The strategic move of SM Group enabled SM Prime to realize synergies among its business units, increasing efficiencies in operations and revenue in enhanced shareholder value. It also allowed SM Prime to pursue larger projects, from reclaiming land to long-term integrated developments,” it said.

Ayala Land Inc. comes in second, with a market capitalization of P608.14 billion, while Megaworld Corp., the property-development arm of Andrew Tan, comes in a far third, with P146.36 billion in market capitalization.

SM Prime earlier said it plans to spend at least P100 billion over the next two years to support its developmental goals.

SM Prime said it is allocating 80 percent of its capital expenditure on project developments, mostly for mall and residential development. The remainder is used for land banking.

This year SM Prime is scheduled to open five new malls in the Philippines, all outside Metro Manila. These are Cagayan de Oro Downtown Premier, an SM-Cherry brand in Antipolo, downtown Tuguegarao in Cagayan, Puerto Princesa in Palawan  and 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 its malls are located in Metro Manila, 35 percent in Luzon outside Metro Manila, 14 percent in the Visayas and 8 percent in Mindanao.

For the residential group, SM Prime is slated to launch this year between 15,000 and 18,000 residential units in high-rise and midrise buildings, as well as house and lot developments.