MANILA, Philippines – Strong revenues from its rental and residential projects allowed SM Prime Holdings Inc., the integrated property firm of the country’s richest man Henry Sy, to post robust income growth in the second quarter.

SM Prime, one of the leading integrated property development companies in Southeast Asia, also posted double-digit profit growth in the first half, in line with full-year targets, its top official said yesterday.

In a regulatory filing, SM Prime said consolidated net income jumped 12 percent to P5.22 billion in April to June period from P4.66 billion a year ago while consolidated revenues climbed 11 percent to P18.08 billion year-on-year.

Earnings and revenues rose 11 percent and three percent in the first quarter, respectively.

First half net income improved 12 percent to P9.8 billion while revenues picked up seven percent to P33.42 billion, the company added.

“The results were very encouraging as we sustained our growth from the previous quarter. This gives us confidence to meet our full-year target,” said SM Prime president Hans T. Sy.

“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,” he added.

SM Prime is doubling its income and revenues in the next five years as it grows its office, mall, leisure, hotel and residential portfolio two-fold during the same period. It allotted P400 billion in the medium term to support its expansion in the Philippines, China and in Southeast Asia.

In the first semester, SM Prime said rental revenues, which accounted for 50 percent of consolidated revenues, gained 12 percent to P17.67 billion. In the second quarter alone, it rose 13 percent to P9.11 billion from P8.08 billion last year.

SM Prime attributed the growth to new malls opened in 2013 and 2014 in addition to the shopping spaces added in existing malls.

“The cumulative mall space added in the past two years was close to 550,000 square meters (sqm), an increase by eight percent to 6.57 million sqm,” SM Prime said. Same-store rental growth grew seven percent in the first half.

Real estate sales, that accounted for 38 percent of consolidated revenues, rose nine percent to P6.89 billion in the second quarter.

“The second quarter growth was attributed to more projects that were almost completed in the period under review, particularly the Grace and Breeze Residences,” SM Prime said.

However, it was not enough to offset the 17-percent decline in the first quarter. Hence, real estate sales dropped four percent to P11.90 billion in the first semester.

SM Prime said it recorded an 11-percent uptick in cinema ticket sales to P1.29 billion in the second quarter and a 23-percent growth in the first half to P2.35 billion due to the opening of digital cinemas at the new malls and the showing of blockbuster movies.

Amusement and other revenues likewise increased by a quarter to P791 million in the second quarter and advanced 27 percent to P1.5 billion in the first half amid “strong patronage of amusement rides and additional recreational facilities provided by management in various malls,” SM Prime said.

SM Prime’s consolidated operating expenses, excluding real estate related costs, jumped 12 percent to P6.62 billion and 13 percent to P12.51 billion.