SM Prime Holdings Inc., one of the country’s largest integrated property developers and mall operators, reported an 11 percent year-on-year increase in net income for the first quarter of 2025, reaching ₱11.9 billion, driven by resilient domestic demand and its diversified portfolio.
In a regulatory filing on Tuesday, the company attributed the profit rise from ₱10.7 billion in the same period last year to sustained revenue growth, improved margins, and disciplined cost management. Consolidated revenue climbed 7 percent to ₱32.8 billion, buoyed by higher rental income, stronger real estate sales recognition, and increased earnings across various business segments.
“Malls, offices, hotels and convention venues, and even residences posted gains in the first quarter,” said SM Prime president Jeffrey C. Lim, citing the company’s integrated development model and strong consumer fundamentals as key growth drivers.
Shopping malls remained the dominant contributor, generating ₱8.1 billion or 69 percent of total net income—up 13 percent year-on-year—on the back of higher foot traffic, full occupancy, and robust demand for experiential retail. Residential operations contributed ₱2.1 billion or 18 percent of earnings, reflecting a 4 percent increase due to completion and revenue recognition of past project sales.
The office and warehouse segment accounted for 10 percent of net income, with earnings rising 15 percent to ₱1.2 billion, largely from the office market, supported by healthy occupancy and cost discipline. Meanwhile, hotels and convention centers grew earnings 17 percent to ₱362 million, driven by strong room bookings and a full calendar of MICE (meetings, incentives, conferences, and exhibitions) events.
Despite global economic headwinds, including newly announced U.S. tariffs, SM Prime expressed confidence in the resilience of the Philippines’ domestic-driven economy. “Strong consumption and favorable macroeconomic tailwinds will continue to support the strength and growth potential of our portfolio,” the company said in a statement.
Total assets reached ₱1.05 trillion as of March, up 3 percent from year-end 2024, while capital expenditure held steady at ₱19.3 billion, mainly directed toward property development.
SM Prime declared a cash dividend of ₱0.48 per share—comprising a 25 percent regular and 5 percent special dividend payout based on 2024 net income—totaling approximately ₱13.86 billion. The dividend is payable on May 28 to shareholders on record as of May 14.
