SM Prime Holdings Inc., the Philippines’ largest mall developer and operator, said its first-half net income rose almost 14 percent as rental income grew due to higher store sales and the opening of new shopping centers.

The company told the Philippine Stock Exchange on Monday that net income in the six months to June hit P4.27 billion from P3.76 billion in the same period last year. For the second quarter alone, net income rose 15 percent to P2.15 billion.

Total revenues during the first half also increased by 12 percent to P12.71 billion, with second-quarter revenues amounting to P6.64 billion, also a 12-percent increase year-on-year.

SM Prime said¯earnings before interest, taxes, depreciation and amortization (Ebitda) for the six-month period was at P8.68 billion, up 12 percent, resulting in an Ebitda margin of 68 percent. Ebitda is a measure of a company’s cash flow.

“Better growth resulted from the opening of new Philippine malls in 2010, same-store sales¯[growth] of 7 percent , much improved performance in SM’s China malls, and lower borrowing costs,” the developer said.

“The latter is a result of lower interest rates and debt management initiatives which include the prepayment of higher interest-bearing loans through refinancing that also lengthened the maturity of the company’s [debts],” it added.¯

SM Prime said first-half rental revenues grew by 15 percent to P10.92 billion. New malls that opened last year include SM City Tarlac, SM City San Pablo, SM City Calamba, and SM City Novaliches.

SM Prime said operating expenses during the first six months of 2011 rose by 11 percent to P5.92 billion due to an increase in administrative expenses.

In terms of gross revenues, the three malls in China accounted for 8 percent of the company’s total revenues while net income accounted for 5 percent of the total. The average occupancy rate for the three malls in China is now at 91 percent, SM Prime said.¯

In May of this year, SM City Masinag opened with 90,261 square meters of space. Later this year, SM Prime is set to open SM City San Fernando in Pampanga, SM City Olongapo in Zambales, and SM City Suzhou in China. The company is also set to expand two of its existing malls in the Philippines, namely SM City Davao and SM City Dasmariñas in Cavite.

By year-end, SM Prime will have 43 malls in the Philippines and four in China. Its shares added 0.35 percent to P11.58 each on Monday’s trading.

As part of SM Prime’s commitment to a sustainable environment, the company held on June 22 at the SMX Convention Center in Pasay City its annual Green Retail Agenda. The conference, with a theme “Empowerment by Sustainability,” focused on the company’s initiatives geared towards the environment, with emphasis on the many benefits, of green retailing. In addition, SM Prime is also now a member of the US Green Building Council (USGBC), which is a coalition that works to transform the way buildings and communities are designed, built, and operated, thus resulting in a socially responsible, healthy, and prosperous environment that improves the quality of life. Consequently, upcoming SM malls will incorporate environment-friendly design features, while several existing SM malls are scheduled for renovation to transform these into energy-saving green buildings.

SM Aura in Taguig aims to be the first mall in the country to be certified via LEED or Leadership in Energy and Environmental Design, the internationally recognized standard for green building design and construction developed by the USGBC. SM Prime is undertaking other green initiatives, particularly with its new malls, which will be announced on their opening dates.