Aug. 15--SM Investments Corp. (SMIC) said Thursday that its first-half profit rose by double-digits on higher mall rentals and retail sales.

In a briefing, Jose Sio, SMIC executive vice president, said the holding company of the Sy family, posted a 14-percent growth in net income to P6.5 billion at end-June, as revenues increased 17 percent to P65.6 billion.

Sio said retail sales jumped 21 percent to P52.6 billion, while rental revenues from malls and other properties grew by 11.8 percent to P6.4 billion.

"[SMIC's] sound performance during the first half of the year amid many market challenges reinforces the defensive position that [the company] has taken over the years. Our businesses have been equipped to sail through headwinds of spiraling fuel and food prices and changing consumer patterns," Harley Sy, SMIC president said in a statement.

Sy said the company held a long-term perspective that the market turbulence is "temporary."

"We remain on course as far as our expansion program is concerned," he added.

Amid turbulence in the international financial market, SMIC last month borrowed fresh funds through the sale of $350 million worth of five-year bonds. The debt papers, which carry a coupon rate of 6.75 percent, allow holders to sell them back to SMIC in three years.

The company's retail merchandising net income reached P1.6 billion, up 9.5 percent year-on-year, while total sales revenues amounted to P52.6 billion.

Banco de Oro Unibank Inc., which represents the merged Banco de Oro and Equitable PCIBank, posted a net income of P2.4 billion during the first six months, 25 percent lower than that of the same period last year due to the turbulent investment environment.

China Bank realized a net income of P1.5 billion, 10.7 percent lower than the same period last year.

Revenues from real-estate operations for the first semester surged 136 percent to P3.4 billion, while net income jumped 116.3 percent to P70 million.

In a separate statement, the group's mid-income real estate developer, SM Development Corp. (SMDC) said its first-half earnings likewise grew more than two-folds to P392 million from P2 million in the same period last year on the back of P1.8 billion in revenues from operations.

SMDC said revenue at end-June more than doubled from P0.7 billion during the same period last year, as an increasing number of its two condominium projects face completion, on the back of strong pre-selling activities.

In the first half of the year, the company pre-sold another 1,458 housing units worth P2.5 billion.

Gross profit on real-estate sales during the period reached P777 million, a 305-percent growth due to better efficiencies in construction and upward adjustments in unit prices compared with pre-selling rates.

"This resulted in a gross profit margin of 44 percent," the company said.

SMDC has five on-going housing projects. The Mezza, Berkeley and Grass Residences are condominium projects in Quezon City. The Chateau Elysee is in Paranaque City, while Lindenwood Residences, which is a residential subdivision, is in Muntinlupa City .

This month, SMDC will launch two more condominium projects, the Sea Residences near the Mall of Asia Complex in Pasay City and the Field Residences in Sucat, Paranaque City. Also in the pipeline is the Wind Residences, which will rise in Tagaytay City.

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