MANILA, Philippines – SM Prime Holdings Inc. on Monday said its net income for the first half of the year grew by 12 percent to P9.80 billion on the back of rental revenue growth due to new malls and additional shopping space in its existing malls.
In the second quarter alone, consolidated revenues jumped 11 percent to P18.08 billion while total revenues in the first six months of the year jumped by 7 percent to P33.42 billion.
Rental revenues, which accounted for 50 percent of the consolidated revenues, grew by 13 percent to P9.11 billion in the second quarter from P8.08 billion in same period last year.
In the first six months, rental revenues rose 12 percent to P17.67 billion.
SM Prime attributed the increase in rental revenues to the new malls that opened in 2013 and 2014 and the additional shopping space in SM Megamall.
SM Prime’s cumulative mall space added in 2013 and 2014 amounted close to 550,000 square meters, or an 8 percent increase to 6.57 million sqm.
It is currently expanding SM Bacolod and SM Lipa.
SM currently has 49 malls in the Philippines and 5 in China, and plans to open 30 more in the next five years.
Meanwhile, same-store rental growth was at 7 percent in the second quarter, sustaining the growth posted in the first quarter of the year. In the first six months, same-store rental growth also remained at 7 percent.
Consolidated net income grew 12 percent to P5.22 billion in the second quarter of the year from P4.66 billion in the same period last year.
“The results were very encouraging as we sustained our growth from the previous quarter. This gives us confidence to meet our full year target. We are looking forward to hitting our key targets for the rest of the year. This should pave the way in achieving our 5-year roadmap set in April of this year,” said SM Prime president Hans Sy.
Real estate sales also saw a 9 percent growth in the second quarter to P6.89 billion from the P6.34 billion posted a year ago.
SM Prime attributed the second quarter growth to more projects that were almost completed in the period under review, particularly the Grace and Breeze Residences.
The firm said it expects the housing unit group to sustain its growth for the rest of the year as more projects reach completion while new housing projects are scheduled to be launched over the next 12 months.
For the first half of the year, however, SM Prime saw a decline in real estate sales by 4 percent to P11.90 billion.
Big increases were seen, on the other hand, for cinema ticket sales and amusement for the first half of the year.
Cinema ticket sales grew by 23 percent to P2.35 billion while amusement and other revenues jumped 27 percent to P1.50 billion from a year ago.
SM Prime said increases in these units were due to the opening of digital cinemas at the new malls and the showing of blockbuster movies and strong patronage of amusement rides and additional recreational facilities inside the malls.