MANILA – Additional mall space and a rebound in real estate sales drove the increase in SM Prime Holdings Inc.’s second-quarter profit.

In a disclosure to the Philippine Stock Exchange, the Henry Sy-owned property developer said its consolidated net income rose 12 percent to P5.22 billion in the three-months ended June from P4.66 billion in the same period last year.

The second-quarter expansion was slightly faster than the 11 percent improvement in the first quarter as the growth in consolidated revenues in the April to June period accelerated to 11 percent year-on-year to P18.08 billion from 3 percent in the previous quarter.

SM Prime’s first-half profit jumped 12 percent year-on-year to P9.80 billion as consolidated revenues increased 7 percent to P33.42 billion.

“The results were very encouraging as we sustained our growth from the previous quarter. This gives us confidence to meet our full-year target. We are looking forward to hitting our key targets for the rest of the year. This should pave the way in achieving our five-year roadmap set in April of this year,” said SM Prime president Hans T. Sy.

SM Prime is spending P400 billion to expand its businesses and double earnings within the next five years following the consolidation of the Sy family’s real estate assets under the listed company.

Rental revenues, which accounted for half of consolidated revenues, climbed 13 percent to P9.11 billion in the second quarter, pushing first-half rental revenues by 12 percent to P17.67 billion.

SM Prime attributed the increase in rental revenues to new mall openings and the added shopping space in existing malls, particularly SM Megamall. Over the past two years, SM Prime added a cumulative mall space of close to 550,000 square meters, an increase of 8 percent to 6.57 million square meters.

Likewise, same-store rental growth sustained the growth in the first quarter, expanding by 7 percent in the second quarter and in the first half.

Real estate sales, which contributed 38 percent to consolidated revenues, went up by 9 percent in the second quarter to P6.89 billion, reversing the 17 percent decline recorded in the previous quarter as more projected were almost completed during the period.

While real estate sales declined by 4 percent to P11.90 billion in the first semester, SM Prime expects the residential group to sustain its second-quarter growth pace for the rest of the year as more projects reach completion and new housing projects are launched over the next 12 months.

The opening of digital cinemas at the new malls and the showing of blockbuster movies brought cinema ticket sales to P1.29 billion in the three-month period, up 11 percent year-on-year. In the first half, cinema ticket sales rose 23 percent year-on-year to P2.35 billion.

Amusement and other revenues increased by 24 percent to P791 million in the second quarter from P638 million in the same period last year due to increased ridership and additional recreational facilities put up in various malls. Revenues in the first semester reached P1.50 billion, up 27 percent from a year ago.