SM Prime net income up 12% to P12.6B

Property giant SM Prime Holdings Inc. booked a 12-percent growth in first semester core net income to P12.6 billion, driven by higher earnings from mall operations and residential developments.

The growth was supported by a 9-percent increase in consolidated revenues, which hit P39.2 billion, SM Prime said in a disclosure to the Philippine Stock Exchange Monday.

“SM Prime’s integrated development program in the Philippines that is geared more toward provincial expansion sustained its financial performance in the first half of the year. SM Prime is well-positioned for higher growth given that the Philippines’ economic upturn is starting to spread in the provinces,” SM Prime president Hans Sy said.

In the first half of the year, mall revenues rose by 9 percent year-on-year to P23.6 billion, about 60 percent of consolidated revenues.

Excluding contributions from newly opened malls, mall revenues rose by 7 percent year-on-year as the group profited from the expansion of retail space in the past two years.

SM Prime’s residential group also grew revenues by 6 percent year-on-year to P13.2 billion. This segment accounted for 34 percent of consolidated revenues. Doris Dumlao-Abadilla