SM Prime Holdings Inc. announced on Monday that it achieved a record net profit of P24.5 billion in the first half of 2024, marking an 11 percent increase compared to P22.1 billion in the same period last year. The company attributed the growth to higher rental income, strong real estate sales, and increased ancillary revenue.

The firm reported its best half-year earnings to date, with second-quarter net income rising 10 percent to P12.8 billion. Consolidated revenues grew 5 percent to P68 billion from P64.7 billion a year earlier. Rental income derived from malls, offices, hotels, and convention centers made up 60 percent of total revenue, real estate sales contributed 29 percent, while cinemas, food and beverage outlets, amusement services, and other offerings accounted for the remaining 11 percent.

"The redevelopment efforts and new attractions at our flagship Mall of Asia significantly boosted foot traffic and tenant sales," said SM Prime President Jeffrey Lim. He added, "Strong consumer activity and improving business confidence positively impacted contributions across our portfolio."

Malls remained the largest contributor, generating 69 percent of total profits or P17 billion, which is a 14 percent increase driven by new mall openings, increased visitor numbers, and high occupancy rates.

Residential income saw a modest 2 percent growth to P5.1 billion, supported by revenue from completed units and sales from previous years, accounting for 21 percent of earnings. The office and warehouse segment grew 9 percent to P1.7 billion, representing 7 percent of total income due to higher warehouse occupancy.

Revenue from hotels and convention centers reached P635 million, up 20 percent from P527 million, comprising 3 percent of overall income. This growth was fueled by strong room occupancy and an active schedule of meetings, incentives, conferences, and exhibitions (MICE).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 10 percent to P41.6 billion, while operating income rose 11 percent to P34.4 billion.

Expressing optimism, the company highlighted favorable conditions such as stable inflation, easing policies, and strong domestic consumption that are expected to enhance consumer confidence and demand. Capital expenditures totaled P37.3 billion during the first half as part of a P100 billion full-year investment plan aimed at high-impact projects to drive long-term value.

Lim affirmed, "Our results demonstrate the resilience of our diversified business portfolio. With our capital expenditure program on track, we are well-positioned to sustain growth in key markets."

Chief Finance Officer John Nai Peng Ong revealed plans to raise between P15 billion and P20 billion from retail bonds in the fourth quarter, emphasizing that aside from refinancing maturing loans, no additional fundraising activities are currently planned.

On the stock market, SM Prime shares increased by 70 centavos or 3 percent to P24 per share, outperforming the Philippine Stock Exchange index which rose 0.67 percent that day.