SM Prime Holdings Inc. saw its net income grow by 15 percent in the third quarter to P4.2 billion following its expansion, the company said in a disclosure on Monday.
 
Revenues for the quarter increased by 13 percent to P16.2 billion.
 
This brought the January to September net income to P22.9 billion, up 70 percent from a year earlier, including a P7.4-billion one-time trading gain booked in the first quarter.
On a recurring basis, the nine-month bottom line noted 15-percent growth to P15.5 billion.
 
“SM Prime’s expansion across all its various business portfolios since 2013 has driven its strong financial performance this year,” said SM Prime President Hans T. Sy.
 
Rental revenues from retail and commercial spaces accounted for 56 percent of the revenues, up 11 percent to P29.4 billion from the P26.4 billion.
 
“The growth in rental revenues was mainly driven by rising contribution from the new malls and the expansion of shopping spaces in existing malls in 2013 and 2014,” the disclosure read.
 
On the other hand, the company’s real estate business accounted for 32 percent of revenues. It grew by 4 percent to P16.6 billion from P16 billion the back of higher sales and construction accomplishment of SM Development Corp. (SMDC). The completed projects were launched from 2010 to 2013.
 
Cinema and event ticket sales also registered a growth of 4 percent to P3.4 billion, contributing 6.5 percent of consolidated revenues.
 
Other revenues stood at P2.8 billion, up 30 percent from the P2.1 billion, including income from rides, bowling and ice skating operations, merchandise sales from snack bars, and sales of food and beverages.
 
“We expect SM Prime’s growth to be sustained as we continue to increase our mall footprint by 13 percent this year,” Sy said.
 
Sy noted the company is launching SM Seaside Cebu later this year. “We see Metro Cebu as one of our important growth corridors following our growth track in Metro Manila,” he said.
 
SM Prime is on track to close 2015 with 55 malls in the Philippines and six in China, with a combined gross floor area of around 8.3 million square meters.