SM Prime Holdings, Inc., the country’s leading shopping mall developer and operator, reported a seven percent improvement in net income last year to P6.41 billion from P5.97 billion in 2007 due to the opening of new malls.

The firm disclosed to the Philippine Stock Exchange (PSE) that the net income of its three malls in China also grew to P96 million in 2008 compared to a net loss of P3 million in 2007, while net income of its Philippine operations grew 6 percent to P6.32 billion from P5.97 billion in 2007.

SM Prime, which currently owns 33 malls in the Philippines and 3 malls in China, posted a 12 percent increase in gross revenues for 2008 to P17.84 billion from P15.97 billion in 2007.

Rental revenues remain the largest portion, with a growth of 15 percent to P15.36 billion from the previous year’s P13.40 billion. This is largely due to rentals from new SM Supermalls opened in 2007, namely, SM City Bacolod, SM City Taytay and SM Supercenter Muntinlupa.

In addition, three malls were also expanded in 2007, namely, SM City Pampanga, SM City Cebu and Mall of Asia. Towards the end of 2008, three malls were opened — SM City Marikina, SM City Rosales and SM City Baliwag.

Likewise, the Megamall Atrium and The Annex at SM North Edsa were also opened in the last quarter of 2008. The new malls and expansions added 705,000 square meters to total gross floor area.

Currently, the new malls have an average occupancy level of 93 percent. Same store rental growth is at 5 percent.

In terms of gross revenues, the three malls in China contributed P0.83 billion in 2008 and P0.62 billion in 2007, or 5 percent and 4 percent of total consolidated operating revenues, respectively.

Likewise, in terms rental revenues, the China operations contributed P0.81 billion in 2008 and P0.60 billion in 2007, or 5 percent and 4 percent, respectively, of SM Prime’s consolidated rental revenue.