MANILA – SM Prime Holdings Inc., the property development arm of Sy-led SM Group, posted a 13 percent profit growth in 2014 driven by a double-digit growth in revenues.

SM Prime said its consolidated net income in 2014 reached P18.4 billion while its revenues grew 11 percent to P66.2 billion.

The firm said its rental revenues from retail and commercial spaces increased by 13 percent to P36.5 billion in 2014 from P32.2 billion in 2013. Rental revenues accounted for 55 percent of SM Prime’s consolidated revenues.

The rise in rental revenue was attributed to the opening and expansion of malls in 2013 and 2014, particularly the SM Aura Premier in Taguig, SM City BF Parañaque, Mega Fashion Hall in SM Megamall in Mandaluyong, SM City Cauayan in Isabela, and SM Center Angono in Rizal, which have a combined total gross floor area of 564,000 square meters.

SM Prime said growth was also partly due to TwoE-comCenter at the Mall of Asia Complex, which opened in 2012 and is now fully occupied.

SM Prime’s housing group, meanwhile, posted a 7 percent increase to P22.2 billion in real estate sales in 2014 mainly driven by the increase in the pace of construction of sold units in Grace Residences in Taguig, Shell Residences in Pasay, Breeze Residences in Pasay, Green Residences in Manila, Grass Residences Phase 2 in Quezon City and Trees Residences in Quezon City.

The housing group accounted for 33 percent of consolidated revenues.

Ticket sales in SM cinemas also showed growth of 14 percent to P4.3 billion driven by the opening of additional digital cinemas in the new malls and expanded malls and by the launch of international and local blockbuster movies.

SM Prime president Hans Sy said the firm expects last year’s strong performance to continue this year as it pursues expansion plans of malls and residential projects.

“The encouraging financial performance in 2014 reiterates that the transformation of SM Prime into a property conglomerate is bearing fruits and trending above management expectations. We expect this performance to be surpassed this year as the company pursues its 2015 expansion plans with the opening of four new malls, the completion of FiveE-comCenter and the launch of five new housing projects. This is to complement the expansion of existing malls and on-going construction of high-rise residential development projects,” he said in a statement on Monday.