SM Prime posts 18% net income in 1997

March 19, 1998 PSE CIRCULAR FOR BROKERS NO. 421-98 SM Prime posts 18% net income in 1997 SM Prime Holdings, Inc., the Philippine mall chain developer and operator, reported a net income of P2.26 billion in 1997, up 18% from the previous year, on revenues of P4.31 billion, up by 14%. Its financial position remains solid with a cash balance of P10.6 billion as of the end of 1997, and total assets of P30.9 billion, an increase of 18% over P26.2 billion of 1996. The performance is notable, considering the environmental of an Asian financial turmoil in the second half of the year. In 1997 SM Prime opened two new malls, SM City-Bacoor in Cavite in July, and SM City-Fairview in Quezon City in October. These malls added some 250,000 square meters of gross floor area, bringing SM Prime's mall space to a total of 1.3 million square meters. The operating performance of these two malls has been impressive with 83% of lease space awarded to tenants as of January 1998. These malls are expected to bring in more revenues and cash flow this year in addition to those of the existing five operating malls. prLL The company's land bank for future mall construction has 172 hectares in ten strategic locations, including Bacolod in the Visayas, and Cagayan de Oro and Davao in Mindanao. It is currently constructing malls on two of these sites, Iloilo and Manila. SM Prime sees the current currency crisis in the region as an opportunity to make its strategic moves in positioning itself even better in the industry