New malls boost SM Prime profits in first half
MANILA, Philippines - SM Prime Holdings, the Philippines' biggest mall developer and operator, posted P4.92 billion net income in the first half of the year, a 15% increase from P4.27 billion a year ago.
In the second quarter alone, SM Prime reported a P2.49 billion net income, a 16% jump from the same period in 2011.
Revenues rose 15% to P14.57 billion year-on-year, on the opening of new malls in the Philippines, 8% increase in same store sales and improved performance of the SM malls in China.
"We are pleased to reach our targets for the first half of this year on the back of robust consumer spending and strong economic fundamentals. In line with this, we look forward to the second half of the year with more confidence in implementing our expansion plans, especially as we move towards the holiday season," SM Prime president Hans T. Sy said, in a statement.
SM Prime said its operating expenses went up 15% to P6.79 billion in the January to June period, due to higher administrative expenses such as utilities, business taxes, and manpower expenses. Income from operations increased 15% to P7.78 billion.
The company's four malls in China contributed P1.27 billion for the first half, or 9% of total consolidated revenues; and P0.32 billion for the six-month period, or 7% of total consolidated net income. The SM China malls have seen increases in rental rates and improvements in occupancy levels, which is now at 95%. The malls are located in Xiamen, Jinjiang, Chengdu and Suzhou in China.
There are 44 SM malls in the Philippines. SM Prime opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga earlier this year.
For the rest of 2012, SM Prime is scheduled to launch SM City General Santos in South Cotabato, SM City Lanang in Davao City, and SM Chongqing in China. By year-end, SM Prime will have 46 malls in the Philippines and five in China with an estimated combined gross floor area of 6.3 million square meters.