Southeast Asian property giant SM Prime Holdings Inc. (SM Prime) breached P1 trillion in market capitalization at the stock market yesterday, making this Sy family-led company the first local firm 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 Ong said in a press statement.
Shares of SM Prime closed yesterday at a new high of P34.60 per share, rising by 2.52 percent. Based on this closing rate, it was valued by the stock market at P1.15 trillion.
This also made SM Prime the most valuable company in the stock market, followed by parent conglomerate SM Investments Corp. which is likewise nearing the P1-trillion market cap.
About 31.83 percent of SM Prime’s shares are held by the public.
Veteran stock broker Joseph Roxas, president of Eagle Equities, estimated SM Prime was already trading at a price to earnings ratio of 42x as of the first quarter. This means that investors are paying 42 times the money they are making from this property company in terms of earnings per share.
“I think the market likes it for the retail component,” Roxas said.
As of end-March, SM Prime already has in its portfolio 60 shopping malls in the Philippines and seven in China with a combined gross floor area (GFA) of nine million square meters. Newly opened malls include SM Seaside City Cebu, SM City East Ortigas, SM City San Mateo, SM City Cabanatuan, SM City San Jose Del Monte, SM City Trece Martires and S Maison in SM Mall of Asia. SM Center Molino and SM City Iloilo have also been expanded.
Aside from its shopping malls, SM Prime also has a growing hotel business. It has six hotels with over 1,500 rooms, four convention centers and three trade halls. Flagship hotel Conrad Manila opened at the Mall of Asia complex in June 2016.
On the office property segment, SM Prime has six office buildings with a combined GFA of 383,000 square meters.
SM Prime credited its success to the integration of all property businesses under one roof in 2013. The residential business under SM Development Corp. was consolidated into the company, creating one of the most valuable companies in Southeast Asia.
“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,” the company added.
“SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities that enrich the quality of life of millions,” it said.