MANILA, Philippines - Shopping mall developer and operator SM Prime Holdings reported a 16% increase in net income to P10.53 billion in 2012, as it opened more malls.
In a statement, SM Prime said it exceeded its 2012 profit growth target for the second straight year.
Total revenues jumped 14% to P30.73 billion, including operations of its five SM malls in China.
The Sy-led company attributed its "better-than-expected performance" to rentals from the new SM malls opened in the last two years and 8% same-store rental growth.
SM's malls in the cities of Xiamen, Jinjiang, Chengdu, Suzhou, and Chongqing, have also shown strong results with a 24% rise in net income to P1.10 billion in 2012.
"We are confident that the Philippine growth story, which we saw unfold last year will continue in 2013. In line with this, we will proceed with our aggressive expansion plans and continue to pursue new opportunities for growth," SM Prime president Hans T. Sy said in a statement.
SM Prime’s consolidated rental revenues, which accounted for 84% of the total, went up 14% P25.90 billion.
New rental space came from SM City Olongapo, SM City Consolacion, SM City San Fernando, SM City General Santos, SM City Lanang, and SM Chongqing.
For 2012, operating expenses also rose 14% due to expenses related to mall expansion. Income from operations went up 14% P16.73 billion in 2012.
SM cinemas saw a 14% jump in ticket sales in 2012, mainly due to blockbuster films such as "The Avengers," "Twilight Saga: Breaking Dawn Part II," "The Amazing Spiderman," "This Guy’s in Love with U Mare”, "The Mistress”, and "Sisterakas”.
This year, SM Prime is set to open SM Aura Premier in Taguig City and SM Cauayan in Isabela. SM Megamall will also be expanded with the construction of Building D. SM Prime expects to have 48 malls in the Philippines and 5 in China by the end of 2013.