SM Prime Holdings Inc., the integrated property company owned by tycoon Henry Sy, said Monday consolidated net income grew 12 percent in the second quarter to P5.22 billion from P4.66 billion year-on-year, boosted by higher rental revenues and residential sales.

SM Prime said in a disclosure to the stock exchange the second-quarter consolidated revenues increased 11 percent to P18.08 billion.

Net income in the first half increased 12 percent to P9.8 billion, as total revenues rose 7 percent to P33.42 billion during the period.

“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 SM Prime president Hans Sy.

Rental revenues, which accounted for half of the consolidated revenues, grew 13 percent to P9.11 billion in the second quarter from P8.08 billion in same period in 2013, bringing first half rental revenues to P17.67 billion, up 12 percent from a year ago.

SM Prime said the increase in rental revenue was primarily due to the new malls opened in 2013 and 2014 as well as the expansion of existing malls, including SM Megamall, which added 101,000 square meters of leasable space.

Same-store rental growth hit 7 percent in the second quarter, sustaining the growth posted in the first quarter of the year.

Real estate sales, which contributed 38 percent to total consolidated revenues, registered a 9-percent growth in the second quarter to P6.89 billion from P6.34 billion last year. The growth in second-quarter sales was a reversal of the 17-percent decline recorded in the previous quarter.

First-half real estate sales, however, dropped 4 percent to P11.9 billion.

SM Prime said it expected the housing unit group to sustain the growth for the rest of the year when more projects would reach completion while new housing projects were lined up for launch over the next 12 months.

Cinema ticket sales increased 11 percent to P1.29 billion in the second quarter from P1.16 billion in 2013. In the first half, cinema ticket sales jumped 23 percent to P2.35 billion. Jenniffer B. Austria