SM Prime’s market value hits P1 trillion

SM Prime Holdings, Inc., the property company owned by the country’s richest man Henry Sy, Sr., said its market value reached P1 trillion on Monday, the first Philippine company to hit this milestone.

“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 Chief Finance Officer John Nai Peng C. Ong was quoted as saying in a statement.

Shares in the company climbed 2.52% or 85 centavos to close at P34.60 apiece, as the Philippine Stock Exchange index ( PSEi) surged to its highest level for the year. The PSEi closed 1.2% or 93.72 points higher at 8,001.38 on Monday. The SM group conducted a corporate restructuring in 2013, which saw the consolidation of the group’s real estate companies and assets under SM Prime. The company said this has enabled it to realize synergies among business units, increase efficiencies in operations, and enhanced shareholder value. The strategic move further allowed SM Prime to pursue larger projects, such as the reclamation of land into long- term integrated developments.

This year, SM Prime has committed P50 billion worth of capital expenditures for the expansion of its mall and residential businesses. The funding program forms part of SM Prime’s five-year road map which seeks to double their recorded net income and revenues in 2013 by 2018.

For the mall component, SM Prime targets to end 2017 with a total of 75 malls, or an additional 10 malls to its nationwide footprint of 65. These new malls are geared toward provincial areas, particularly in Cagayan de Oro, Antipolo, Tuguegarao, Palawan, and Batangas. —