Retail giant SM Prime Holdings Inc. reported that its earnings in 2008 rose by single-digits, boosted by higher rental revenues coming from new malls.

In a statement, SM Prime said net income last year rose about seven percent to P6.4 billion from P 6 billion in 2007.

Revenues improved 12 percent to P17.8 billion.

These results include the operations of the three SM malls in China, after these were acquired in late 2007. The SM China malls are located in the cities of Xiamen and Jinjiang in Southern China, and Chengdu in Central China.

“Notwithstanding the global financial situation, SM Prime achieved its goals and sustained its expansion in 2008. The company performed fairly well and was able to deliver on its targets and objectives…’ SM Prime President Mr. Hans T. Sy said.

In 2008, rental fees continued to account for the largest share of SM Prime’s consolidated revenues, amounting to P15.4 billion, for a 15-percent increase year-on-year.

“Bulk of the increase came from additional space in new malls and mall expansions during the year. The new malls were SM City Marikina, SM City Rosales, and SM City Baliwag. Mall expansions were seen in The Annex at SM City North Edsa, and The Atrium at SM Megamall,’ SM Prime said.

Put together, the new malls and expansions in 2008 added nine percent, equivalent to 353,000 square meters (sqm) in gross floor area (GFA) for a total of 4.3 million sqm.

The average occupancy rate of the new malls now stands at 93 percent.

Meanwhile, cinema ticket sales during the year were flat due to a dearth of movie blockbusters.

Operating expenses for full year 2008 increased 15 percent to P8.2 billion, from P7.1 billion in 2007, largely because of the new and expanded malls.

For 2009, SM Prime plans to open SM City Naga in Camarines Sur, SM City Rosario in Cavite, SM City Pamplona in Las Piñas, and the Sky Garden at SM City North Edsa.

The company is also set to expand SM City Rosales in Pangasinan.

By the end of the year, SM Prime will have 36 malls nationwide and three malls in China, with an estimated GFA of 4.9 million sqm.