Shopping mall giant SM Prime Holdings Inc. posted a net income of P2.9 billion in the first half of the year, up 11 percent from a year earlier on higher revenues boosted by lease operations.

In a financial report filed with securities regulators, SM Prime said gross revenues grew 22 percent to P7.45 billion, 83 percent of which came from rental operations.  Lease revenues rose 22 percent to P6.15 billion as it opened new malls during the period. 

In the second quarter, SM Prime’s net earnings improved 12 percent to P1.43 billion on gross revenues of P3.9 billion, an increase of 21 percent from the same period last year.

Income from operations went up 17 percent to P3.54 billion while operating expenses grew 30 percent to P3.3 billion. “We are pleased with our first-half results. It reflects the fact that our aggressive expansion last year is generating benefits beyond our expectations, as our new malls enjoy very high occupancy levels and record foot traffic,

SM Prime president Hans T. Sy said. He also expressed confidence that foot traffic in the Mall of Asia will improve toward the fourth quarter as adjacent buildings in the area such as the SMX Convention Center and SM Investment Corp.’s business process outsourcing (BPO) building, OneEcom Center, both open for business in October this year. 

“The SM Mall of Asia is clearly in the radar screen of Filipino consumers, foreign and domestic tourists, and other groups who have made it the prime destination mall in the country,Sy said.

“After opening our state-of-the art 32-lane bowling center, we are also looking forward to the opening of the Science Discovery Center and Planetarium at the Mall of Asia and the Sunset Strip fronting Manila Bay this October.

These will be new concepts for our customers to enjoy and learn from and make the country’s largest mall an even more interesting and diverse destination.he added.

SM Prime has opened only one mall so far this year – SM City Bacolod. As of end-June this year, SM Prime had a total of 28 malls nationwide with a gross floor area of 3.6 million square meters and an average daily foot traffic estimated at two million.