SY-LED property developer SM Prime Holdings, Inc. reported a net income of P48.8 billion for 2025, up 7% from P45.6 billion a 12 months earlier, supported by revenues from its industrial properties and lower expenses.
Consolidated revenues reached P141.1 billion, barely higher than P140.4 billion recorded in 2024, the corporate said in a press statement on Monday.
Revenue from industrial properties, which include rental establishments, increased by 6% to P98.6 billion from P92.6 billion a 12 months earlier.
Within the fourth quarter, SM Prime posted a net income of P11.6 billion as lower real estate revenues were offset by reduced costs.
Revenue for the three-month period declined by 7% to P37.7 billion, while costs and expenses fell by 12% to P17.9 billion.
Operating income for the period stood at P19.8 billion.
In a briefing on Monday, SM Prime President Jeffrey C. Lim said external volatilities within the fourth quarter of 2025 “tempered the gains and momentum built earlier within the 12 months.”
“The added volatility sharpened our priorities and reinforced discipline in how we allocate resources, serve our customers, and execute across our businesses. That discipline translated into strong margins, robust earnings, and regular improvements across our businesses,” he said.
Malls accounted for 60% of total revenues in 2025, contributing P85.1 billion, while the residential segment generated P42.5 billion, or 30% of revenues.
Hotels and convention centers accounted for six% of total revenues at P8.5 billion, while offices and warehouses contributed 4%, or P5.4 billion.
Total costs and expenses declined by 4% to P69.4 billion from P72.4 billion in 2024 as a result of lower operating expenses, film rentals, insurance, and other expenses.
Capital expenditures in 2025 rose barely to P81.9 billion from P81.3 billion, with investments mainly directed toward mall, residential, and estate projects, in addition to office, hotel, and convention center developments.
SPENDING PLANS
For 2026, SM Prime said it should give attention to spending efficiency amid expectations of slower economic growth.
The Philippine economy expanded by 4.4% in 2025, the slowest pace in five years, as hostile weather conditions and governance issues weighed on consumer and investor confidence.
“We won’t cut our spending or delay to conserve costs, but we’ll be certain that our spending is efficient and the returns are very clear,” Mr. Lim said.
The corporate said it should prioritize the timely completion of projects, strengthen customer engagement, and improve services to sustain traffic and sales.
SM Prime is keeping its capital expenditure (capex) budget at P100 billion this 12 months, Mr. Lim said.
He said that growth within the property sector may vary across segments.
“Our industrial properties, particularly our malls, hotels, and convention centers, are expected to anchor our growth in 2026. The remaining will construct steadily and contribute as operating conditions improve,” he added.
The corporate plans to open 4 latest malls this 12 months, that are expected to extend gross floor area by 3% to 4%.
SM Prime can be not planning to amass latest assets this 12 months, Mr. Lim said.
“We’re also comfortable with our existing inventory,” he said. “Unless an asset is well-located, and if it suits our integrated development strategy plus the pricing and return criteria, we’ll probably look into it.”
SM Prime ended 2025 with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 6.61 times.
Total assets rose by 7% to P1.1 trillion, with investment properties valued at cost accounting for 61% of the entire. Money and money equivalents stood at P27.6 billion.
SM Prime shares on Monday fell by 0.23% or five centavos to shut at P21.30 apiece. — Beatriz Marie D. Cruz