SM Prime Holdings Inc., the country’s largest integrated property developer, posted a record high first-half net income of P24.5 billion, marking an 11 percent increase from P22.1 billion year-on-year, driven by robust rental income, residential sales, and rising ancillary revenues.
Consolidated revenue climbed 5 percent to P68 billion from P64.7 billion, with mall, office, hospitality, and convention center rentals comprising the largest share at 60 percent. Real estate sales accounted for 29 percent, while cinema, food, beverage, and amusement revenues made up the remaining 11 percent.
Malls remained the group’s primary earnings driver, contributing P17 billion or 69 percent of total income, up 14 percent year-on-year, supported by new mall openings, increased foot traffic, and strong occupancy rates. SM Prime President Jeffrey C. Lim credited redevelopment initiatives and new attractions at Mall of Asia for enhancing tenant sales and consumer visits.
Residential earnings rose 2 percent to P5.1 billion, driven by revenue recognition from completed units and prior sales, comprising 21 percent of income. Offices and warehouses delivered P1.7 billion in earnings (7 percent share), up 9 percent, due to improved warehouse utilization. The hotels and convention segment earned P635 million, a 20 percent increase, boosted by stronger bookings and an active MICE (meetings, incentives, conferences, and exhibitions) calendar.
SM Prime spent P37.3 billion in capital expenditures during the first half and affirmed that its P100 billion full-year capex plan remains on track. “Our focus remains on high-impact developments that create long-term value,” the company said.
Looking ahead, Lim said SM Prime is likely to sustain its growth trajectory, citing easing inflation, the Metro Manila wage hike, potential interest rate cuts, and regional mall expansion as key growth drivers for the second half of 2025.
