Rental revenues from mall expansions and consistent improvement in same-mall sales have helped boost income for integrated property company SM Prime Holdings.

For its third quarter, the company had 16 per cent year-on-year net income growth to PHP5.6 billion (US$110.5 million). This led to a 15 per cent increase in net income in the first nine months to PHP20 billion.

Consolidated revenue was up 12 per cent to PHP64.6 billion, while overall operating income grew by 16 per cent to PHP30.1 billion.

“Our performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market,” says SM Prime president Jeffrey Lim.

Mall revenues for the first nine months showed 10 per cent growth to PHP38.5 billion, with the malls contributing 60 per cent of consolidated revenues. Mall rentals went up by the same percentage to PHP32.8 billion, primarily because of expansions and openings over the past two years. Same-mall sales were steady with 7 per cent growth.

Cinema and event ticket sales eased by 3 per cent to PHP3.3 billion, whereas revenues from amusement and merchandise sales surged by 26 per cent to PHP2.4 billion.

Consolidated mall operating income improved by 12 per cent to PHP21.3 billion, with the operating margin maintained at 55 per cent.

SM Prime has 65 shopping malls in the Philippines and seven in China, and will open two more malls this year, SM Center Lemery in Batangas and SM Center Pulilan in Bulacan, taking its provincial property count to 44 from 38 a year ago.