SM Prime Holdings Inc., the country’s largest integrated property developer, lined up 10 new malls for opening over the next two years.
SM Prime said in an offer supplement filed with the Securities and Exchange Commission it would open five malls in 2020, including SM City Daet, SM City Tanza, SM City Bataan, SM City Roxas and SM City Sorsogon.
These five new malls will have a gross floor area of 222,000 square meters.
SM Prime is also set to complete in 2020 the expansion of SM Mall of Asia Phase 4 with an additional GFA of 16,000 sqm.
The property firm said that in 2021, it would launch five shopping malls including SM Grand Central, SM City Tuguegarao, SM City Naga, SM City San Pedro, and SM Moonwalk Parañaque. These five malls have a total GFA of 223,000 sqm.
SM Prime said it was also expecting to complete by 2021 the expansion of three existing malls―SM City Clark, SM City Sta. Rosa and SM City Calamba with an additional GFA of 146,000 sqm.
It said funds for the new malls would come from the planned P10-billion peso bond offering slated this year.
SM Prime earlier said it would issue P10 billion in fixed-rate bonds representing the fourth and final tranche of the P60-billion bond shelf registration it filed in 2016.
SM Prime chalked up a net income of P8.8 billion in the first quarter, up 16 percent from P7.6 billion in the same period last year on the back of steady growth in rental revenues and residential sales.
Consolidated revenues posted a 14-percent increase to P26.5 billion from P23.3 billion a year ago, while operating income increased 17 percent to P13 billion from P11 billion.
The property firm attributed the company’s strong first-quarter performance to the consistent growth in rental income and higher residential sales.
The mall business, which accounted for 56 percent of the consolidated revenue, reported 8-percent revenue growth to P15 billion in the first three months from P13.9 billion in the same period last year.
The residential group also recorded a 23-percent increase in revenue in the first quarter to P9.2 billion from P7.5 billion a year earlier.