MANILA, Philippines – Shopping mall giant SM Prime Holdings Inc. reported better-than-expected financial results in the second quarter with net earnings rising 16 percent to P2.49 billion.
This brings SM Prime’s six-month net income to P4.92 billion or 15 percent higher than the P4.27 billion recorded the previous period.
Revenues also climbed 15 percent to P14.57 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) went up 12 percent to P9.71 billion
Operating income likewise increased 15 percent to P7.78 billion. The growth was attributed to the eight-percent rise in same-store sales, new store openings, and the improved performance of the group’s malls in China.
SM Prime’s four malls in China are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of 0.6 million square meters. These contributed P320 million or seven percent of the company’s aggregate earnings.
In terms of gross revenues, these four malls pumped in P1.27 billion, accounting for nine percent of total.
The SM China malls are enjoying healthy increases in rental rates and improvement in occupancy levels. The average occupancy rate for the four malls in China is now at 95 percent.