SM Prime net income as of June up 15%

Giant shopping mall operator SM Prime Holdings grew its first-semester net profit by 15 percent year-on-year to P5.64 billion, due to the opening of more malls alongside higher rental income from its existing network.

In a disclosure to the Philippine Stock Exchange Monday, SM Prime reported that year-on-year profit in the second quarter alone rose by the same pace of 15 percent to P2.85 billion on the back of a 16-percent rise in revenues to P8.72 billion.

For the first six months, revenues expanded by 14 percent to P16.55 billion over the level in the same period last year, while cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) likewise rose by 14 percent to P11.09 billion.

“SM Prime continues to deliver strong revenue growth affirming our positive outlook for 2013. More importantly, the increasing patronage and support that SM Supermalls receive from its customers drive us to deliver better services and concepts that cater to the needs of everyone. In return, we take strides to provide greater convenience, diversity, fresh concepts and exciting experiences in all our SM Supermalls,” said SM Prime president Hans Sy.

The group continued to unlock higher rental earnings outside of newly opened malls. Same-store rental growth in the first semester stood at 7 percent.

New malls opened in 2012 and 2013 expanded SM Prime’s GFA by 698,000 square meters (sqm), largely pushing rental revenues higher alongside increasing contribution of SM’s China malls.

By the end of the year, SM Prime will have 48 malls in the Philippines and five in China with an estimated combined gross floor area of seven million sqms. Doris C. Dumlao