MANILA—The property arm of the SM Group registered flat earnings last year as costs related to its restructuring weighed on the company.

In a regulatory filing, SM Prime Holdings Inc said its earnings attributable to equity holders of the parent hit P16.27 billion in 2013, 0.45 percent higher than the P16.64 billion the previous year.

Minus the one-time restructuring cost of P1.28 billion, SM Prime’s consolidated net income would have increased by eight percent year-on-year to P17.55 billion in 2013, the listed firm said in a statement.

This was the first time Henry Sy-owned SM Prime reported the consolidated financial performance of its mall, residential, office and tourism development businesses after it absorbed SM Land and several property assets of the SM Group.

SM Land in turn had absorbed SM Development Corp (SMDC) and Highlands Prime Inc.

“Our consolidated financial results in 2013 were within our expectations. We expect the Philippine economy to sustain its growth momentum in 2014 and create more demand for our property offerings. We will continue to pursue our expansion plans and look for new growth opportunities,” said SM Prime president Hans T. Sy.

Consolidated revenues climbed five percent to P59.79 billion from P57.22 billion a year ago. This was driven by an 11 percent increase in rental revenues, which accounted for 54 percent of the total, to P32.20 billion last year from P28.95 billion in 2012.

The full-year effect of five new malls that were rolled out in 2012, and the opening of SM Aura Premier in 2013 propped up rental revenues. Excluding the new malls and expansion, rental revenues grew seven percent.

SM Prime’s shopping malls in China also maintained their profit growth, with net income amounting to P958 million.

Cinema ticket sales increased eight percent to P3.74 billion from P3.48 billion a year ago, as SM Prime opened additional digital cinemas at the new malls.

Amusement and other revenues jumped 40 percent to P3.08 billion from P2.21 billion in 2012, buoyed by the opening of new amusement rides in SM by the Bay and the SkyRanch in Tagaytay, as well as the increase in advertising income and sponsorship revenues.

The full-year recognition of revenues from Two-Ecom, which began operations in mid-2012 and is now 98 percent-occupied, also helped push up rental revenues from commercial operations by 14 percent to P2.93 billion.

Real estate sales reached P20.78 billion in 2013, while gross margins improved to 42 percent from 37 percent in 2012. The SM group launched three projects last year, namely Grass Phase 2, Shore and Trees — all of which are expected to contribute to revenues starting in 2014.