MANILA, Philippines - SM Prime Holdings, the country's biggest shopping mall developer and operator, reported its profit jumped 14% to P8.43 billion in the first 9 months of the year.
SM Prime said gross revenues in January to September went up 12% to P24.77 billion. The bulk or 85% came from rental revenues, which also rose 12% to P20.94 billion. This was attributed to rentals from new malls, such as those in Olongapo, Consolacion, San Fernando, General Santos, Lanang and Taguig.
SM Prime said excluding new malls and expansion, same-store rental growth was at 7%.
"We continue to exceed our expectations. We expect to sustain our strong performance as we approach the yearend especially as the Christmas season has been, traditionally, our strongest period. Our robust performance in the nine months of 2013 is a testament to the strength of consumption driven by the increase in OFW remittances and the continued growth of the BPO industry,” SM Prime President Hans T. Sy, said in a statement.
Gross revenues of SM's five malls in China rose 14% this year, due to improved mall productivity and lease renewals for the first three malls - SM Xiamen, SM Jinjiang and SM Chengdu. Its gross revenues contributed 9% or P2.17 billion to total consolidated revenues. In terms of rental revenues, the malls contributed 10% to total consolidated rental revenues.
At present, there are 47 SM Supermalls in the Philippines and 5 in China.
SM Prime is opening another mall - SM City BF - in Paranaque by November, and opening SM Megamall Building D in December.