SM Prime Holdings Inc., the country’s largest mall developer and operator, booked a net profit of P4.27 billion in the first six months of the year, up 14 percent from P3.76 billion year-on-year.

SM Prime said in a disclosure to the Philippine Stock Exchange that revenues rose to P12.71 billion on strong sales from malls in the Philippines and China.

Earnings before interest, taxes, depreciation and amortization, or Ebitda, hit P8.68 billion, up 12 percent year-on-year.

SM Prime attributed the growth on the opening of new local malls in 2010, same-store sales growth of 7 percent, as well as the much-improved performance of its malls in China.

SM Prime reported lower borrowing costs as a result of lower interest rates and debt management initiatives, including the prepayment of higher interest-bearing loans through refinancing. This also lengthened the maturity of the company’s loans.

“For the first half of this year, SM Prime exceeded expectations by continuing to implement its proven business model which focuses on building long-term tenant relationships and effective innovation. This is further supported by a capable organization that is firmly committed to satisfy the various requirements of our millions of loyal customers,” said SM Prime president Hans Sy.

First-half rental revenues grew 15 percent to P10.92 billion from P9.49 billion on year.

Same store sales grew 7 percent while additional rental space from the opening of new SM malls in 2010, namely, SM City Tarlac, SM City San Pablo, SM City Calamba and SM City Novaliches contributed to higher revenues. Elaine R. Alanguilan