What: SM Prime, the real estate branch of SM, is experiencing significant financial success.

Why it is important: This performance demonstrates that the mall format is not declining universally, as SM Prime's mall division has shown robust growth and remains a key revenue driver.

SM Prime, a prominent Philippine property developer, has reported a consolidated net income of USD 397.8 million (Php22.1 billion) for the first half of this year, marking a 13% increase from USD 348.6 million (Php19.4 billion) in the previous year. The income growth has been predominantly driven by its mall division, SM Malls, which contributed 58% of the total revenues. The mall business saw a 9% rise in rental income, reaching USD 576 million (Php32 billion) compared to USD 529.2 million (Php29.4 billion) last year, with total mall revenues hitting USD 675 million (Php37.5 billion) for the period.

Other segments of SM Prime also showed positive performance: the residential business unit, comprising 29% of revenues, brought in USD 180 million (Php10 billion); the office segments generated USD 63 million (Php3.5 billion); and the hotels and convention centres contributed USD 61.2 million (Php3.4 billion) in revenues.

Mall business leads SM Prime to double-digit profit increase