SM Prime Holdings, Inc. (SM Prime) said profit for the first half of the year reached P9.8 billion, 12 percent higher than last year’s P8.75 billion. 

Consolidated revenues reached P33.42 billion, 7 percent higher than last year’s P31.23 billion. 

Profit in the second quarter   grew by 12 percent to  P5.22 billion from the P4.66 billion in the same period in 2013. Revenues for the quarter jumped 11 percent to  P18.08 billion from last year’s P16.29 billion. 

“The results were very encouraging as we sustained our growth from the previous quarter. This gives us confidence to meet our full-year target. We are looking forward to hitting our key targets for the rest of the year. This should pave the way in achieving our five-year roadmap set in April of this year.” said Hans T. Sy, SM Prime president. 

Rental revenues reached P17.67 billion, up 12 percent from last year’s P15.77 billion.

“The increase in rental revenue was primarily due to the new malls opened in 2013 and 2014 plus the shopping spaces added in existing malls namely in SM Megamall which contributed an additional 101,000 square meters,” the company said. 

Cumulative spaces added in the past two years hit almost 550,000 sq.m., bringing SM Prime’s total mall space to 6.57 million sq.m. 

Same-store rental for the first six months of the year grew by 7 percent while real estate sales meanwhile dropped 4 percent to P11.90 billion. 

Second quarter real estate sales were  9 percent at P6.89 billion from the P6.34 billion, compared with the 17 percent decline recorded in the previous quarter, as the company recognized sales from projects that were almost completed in the period under review, particularly the Grace and Breeze Residences. 

“SM Prime expects the housing unit group to sustain its growth for the rest of the year as more projects reach completion while new housing projects are lined-up for launch over the next 12 months,” the company said.

Cinema ticket sales reached P2.35 billion, a 23 percent increase mainly due to the opening of digital cinemas at the new malls and the showing of blockbuster movies. 

Amusement and other revenues likewise increased 27 percent to P1.50 billion, mainly due to the strong patronage of amusement rides and additional recreational facilities provided by management in various malls. 

Consolidated operating expenses, excluding real estate related costs, reached P12.51 billion.

The company said the bulk of the increase came from depreciation expenses attributed to new malls added in the past 12 months. 

“Film rentals were also higher as it corresponded to the growth in cinema ticket sales,” the company said.

Consolidated costs of real estate stood at P6.75 billion, 10 percent lower than last year. 

“The decline in costs and recovery in revenues resulted to gross margin enhancement of 43 percent in the first half of 2014 from only 39 percent in the same period last year,” the company said.

SM Prime is one of country’s largest property firms and one of Southeast Asia’s largest real estate companies with interests in malls, residences, commercial buildings, hotels and convention centers and leisure resorts.