SM Prime Holdings Inc. is aiming to match last year’s profit as resilient malls, offices, hotels, and other recurring businesses help cushion continued caution in the residential property market.
SM Prime President Jeffrey C. Lim said the company does not issue formal earnings guidance, but management sees last year’s net income as a reasonable benchmark based on its first-half performance.
“We actually don’t give guidelines, but if you look at the results that we have now, I think, taking aside the residential development, our other businesses, especially the recurring business, should continue to do well in the second half,” Lim said.
“The projection, in terms of matching what we had last year, that is probably our target also,” he added.
SM Prime reported first-half net income of P24.5 billion, unchanged from a year earlier, despite a 5 percent increase in revenues to P71.7 billion.
The flat bottom line highlights the growing importance of the company’s recurring businesses as residential sales remain subdued.
Residential reservation sales reached about P25 billion in the first half, roughly unchanged from last year. SM Prime is banking on a stronger second half, with management targeting P30 billion to P35 billion in reservations.
But the developer is keeping its residential pipeline measured as buyers remain cautious and inventory remains substantial.
SM Prime had about 29,000 residential units in inventory at the end of June, with 13 percent ready for occupancy and 87 percent still under construction.
Management expects faster project completion to help unlock demand. Ready-for-occupancy units generally allow buyers to move in sooner and can translate into quicker reservations than projects still being built.
The cautious residential strategy also gives SM Prime room to lean on its more predictable recurring-income businesses. Its malls, offices, hotels, and other commercial assets are expected to remain key earnings drivers in the second half, supported by relatively resilient consumer spending and demand for commercial space.
The outlook suggests SM Prime is not counting on a sudden housing rebound to deliver its 2026 target. Instead, it is relying on the steady cash generation of its established property portfolio while waiting for residential buyers to regain confidence.
For now, that balance is keeping profits stable even as one of the group’s traditional growth engines remains in a slower gear.
