Sy-led SM Prime Holdings, Inc., the country’s largest shopping mall developer and operator, posted an 11% increase in net income to P1.55 billion for the first quarter of the year mainly due to new malls. 

In a statement, the company said its revenues rose 24% to P3.6 billion from P2.85 billion boosted by higher rent from five malls that opened last year – SM Mall of Asia, SM City Sta. Rosa, SM City Clark, SM Supercenter Pasig and SM City Lipa.  Earnings before interests, taxes, depreciation and amortization rose by 19% to P2.5 billion. 

The company, which operates 28 malls, said rent accounted for 83% of total revenues, pulling in a 26% increase to P3 billion from P2.35 billion.  SM Prime said new malls have an average occupancy level of 97%. Same store rental growth was more subdued at 7%. 

Cinema ticket sales were up 19% to P429 million from P361.48 million, as more cinemas opened, supported by both domestic and international blockbuster films such as Kasal, Kasali, Kasalo, Ghost Rider, 300, Night at the Museum, and Agent X44.  Operating expenses increased to P1.6 billion from P1.14 billion due to aggressive mall openings last year but operating income grew by 17% to P2 billion. 

Company President Hans T. Sy earlier said SM Prime planned to spend P35 billion in the next five years to open new malls and expand existing ones.  The programmed spending includes the P1.8-billion redevelopment plan for the 331,861-square meter SM North EDSA in Quezon City. 

The ongoing redevelopment involves the construction of new buildings and is expected to be completed by the first quarter of 2009.  The company also said it would boost its gross floor area by 10% to 3.9 million square meters by opening three new malls in Bacolod, Taytay and Muntinlupa, as well as expanding existing malls in Cebu, Pampanga, and Fairview. 

The group’s biggest mall, the SM Mall of Asia, will also be expanded to accommodate a science museum and planetarium.  SM Prime budgeted P250 million for the 3,000-square meter science museum and planetarium, which should be finished by yearend. 

The Sy-led company is also developing the Esplanade Sunset Strip, a strip mall in front of the Mall of Asia in partnership with the Salem Group.  Next year, SM Prime will be opening new malls in Tarlac, Naga, Calamba, Baliuag and Marikina.