GMA News

Sy-led property giant SM Prime Holdings Inc. reported a 12 percent increase in first semester net profit to P9.8 billion on strong rental revenues, SM Prime said in a statement Monday.

Total revenues in the January to June rose by 7 percent to P33.42 billion, half of which was driven by rental revenues.

Rental revenues rose 12 percent to P17.67 billion on the back of new malls and mall expansions opened in 2013 and 2014 adding a combined 550,000 square meters in rental space.

Real estate sales slipped by 4 percent to P11.90 billion in the first six months.

The company expects the housing business to sustain its growth from last year on the completion and rollout of more projects over the next 12 months.

Cinema ticket sales increased by 23 percent to P2.35 billion due to the opening of digital cinemas at the new malls and the take from blockbuster movies.

Amusement and other revenues totaled P1.50 billion, up 27 percent on the back of strong patronage of amusement rides and additional recreational facilities provided by management in various malls. 

Consolidated operating expenses, excluding real estate-related costs, rose by 13 percent to P12.51 billion.

“The results were very encouraging as we sustained our growth from the previous quarter. This gives us confidence to meet our full year target," president Hans Sy said in a statement.

"We are looking forward to hitting our key targets for the rest of the year. This should pave the way in achieving our five-year roadmap set in April of this year,” he added.

Last April 15, SM Prime officials bared plans to spend P400 billion in capital expenditures over the next five years as part of the business strategy to double revenues and income as a consolidated property company under the Sy Group of Companies. – Danessa O. Rivera/GMA News