SM Prime Holdings Inc.., the country’s leading integrated property company, said net income in the second quarter grew 15 percent to P7.79 billion from P6.75 billion in the same period last year.
This brought SM Prime’s first-half profit to P14.39 billion, up by 14 percent from P12.59 billion a year ago.
SM Prime said in a disclosure to the stock exchange consolidated revenues rose 10 percent to P43.25 billion from P39.23 billion. Overall operating income increased 13 percent to P20.11 billion from P17.85 billion.
“SM Prime’s performance in the first half of the year reflects a more balanced revenue and income streams from our various businesses including the growing contribution from our provincial operations,” SM Prime president Jeffrey Lim said.
“We are happy to report that our investments in the provinces are now bearing fruits, particularly in mall operations given that these account for more than half of our Philippine malls portfolio. In the coming years, we are expecting a growing contribution from our residential group as we are launching more housing projects across the country,” he said.
SM Prime said mall operations, which contributed 60 percent to total revenues, went up 10 percent to P25.68 billion from P23.42 billion last year.
Mall rentals improved 10 percent to P21.75 billion, driven by additional 1.1 million square meters in retail spaces from new malls and expansions in 2015 to 2017.
Same-mall-sales registered a growth of seven percent.
SM Prime now has 63 shopping malls in the Philippines and seven in China with a gross floor area of 7.8 million sqm and 1.3 million sqm, respectively.
The company is scheduled to open new malls, including SM City Puerto Princesa in Palawan.
Meanwhile, SM’s residential group recorded a 5-percent increase in revenues to P13.91 billion from P13.25 billion. Reservation sales in the first half climbed 22 percent to P27.55 billion from a year earlier.
SM Prime’s commercial properties group also continued to ramp up office development. SM Prime has six office buildings with a combined GFA of 383,000 sqm.
ThreeE-Com and FourE-Com Centers are under construction and are scheduled for completion in 2018 and 2020, respectively.