SHOPPING mall operator SM Prime Holdings Inc. reported on Monday that revenues reached P16.55 billion in the first half of this year, 14 percent higher than the P14.57 billion posted in the same period in 2012.

From January to June 2013 earnings before interest, taxes, depreciation and amortization (Ebitda) was at P11.09 billion, representing a 14- percent increase year-on-year. Ebitda margin stood at 67 percent.

SM Prime also registered an increase of 15 percent in net income to P5.64 billion in the first six months of the year from last year’s P4.92 billion. 

For the second quarter of 2013, gross revenues grew by 16 percent to P8.72 billion, while net income rose to P2.85 billion, up 15 percent from P2.49 billion in the same period of 2012.

“SM Prime continues to deliver strong revenue growth affirming our positive outlook for 2013. More importantly, the increasing patronage and support that SM Supermalls receive from its customers drive us to deliver better services and concepts that cater to the needs of everyone. In return, we take strides to provide greater convenience, diversity, fresh concepts and exciting experiences in all our SM Supermalls,” said SM Prime President Hans T. Sy.

SM Prime is the dominant shopping mall developer and operator in the country, with 47 Supermalls nationwide with a total gross floor area (GFA) of about 6 million square meters (sq m). Overseas, it has five Supermalls in China situated in the cities of Xiamen, Jinjiang, Chengdu, Suzhou and Chongqing, with a total GFA of around 0.8 million sq m.

In the last two years, it opened new malls—SM City Olongapo, SM City Consolacion, SM City San Fernando, SM City General Santos, SM Lanang Premier and SM Aura Premier in Taguig. These new malls propped up rental revenues while same-store rental growth was at 7 percent. Income from operations increased by 14 percent to P8.84 billion from about P7.78 billion a year ago.

The five malls in China contributed P1.39 billion in gross revenues or 8 percent of total consolidated revenues in 2013. Their operations accounted for 10 percent of SM Prime’s consolidated rental revenues. Gross earnings of the five malls in China went up by 9 percent in the period compared with 2012, largely because of improved mall productivity and lease renewals for the first three malls opened, namely, SM Xiamen, SM Jinjiang and SM Chengdu. The company said the first three malls in China have an occupancy rate of 93 percent.

Early this year, SM Prime opened the SM Aura Premier, with a total GFA of 234,892 sq.m. This integrated development incorporates office towers, a chapel, a convention center and mini-coliseum, supported by a retail podium.

“Our offerings at the retail podium in the newly launched SM Aura Civic Center showcased SM Prime’s ability to move away from its comfort zone by catering to a new market, while staying focused in providing affordable luxury to our core market segments,” said Sy.

SM Prime is set to launch this year SM City BF in Parañaque, while SM Megamall will be expanded with the opening of Building D. By the end of 2013, it will have 48 malls across the country and five in China with an approximated combined GFA of 7 million sq.m.