Continuing mall expansion helped drive a 14 per cent rise in SM Prime Holdings’ net profit last year.

In a stock exchange filing yesterday, the company said it achieved a net income of P23.8 billion (US$473.7 million) last year. Strong sales by its residential arm, which accounts for 32 per cent of its business, also contributed to the healthy profit rise.

SM Prime has 60 shopping malls in the Philippines, with 7.7 million sqm of gross floor area and seven in China, with 1.3 million sqm of GFA. The company plans to open at least four more centres in its home market in 2017, adding a further 300,000 sqm of space.

Total revenue last year rose 12 per cent to P79.8 billion.

“SM Prime sustained its overall performance in 2016 on the account of focusing more on recurring income stream complemented by the solid performance of the housing group,” said president Jeffrey Lim in a statement.

“SM Prime is well-positioned to capture the positive impact of the higher infrastructure spending intended by the government that will also spur overall economic growth of the country,” he added.

Revenues from shopping malls rose by 9 per cent last year to P48.6 billion, driven by the addition of 1.5 million sqm of additional space during the past two years.

Excluding new openings, sales growth was up 7 per cent, but cinema sales were down 3 per cent.