SM Prime 9-month income rose to P37.2B amid ‘tough year’

Property giant SM Prime Holdings, Inc. expects market challenges to persist in 2026, but its top official is bullish about “sustainable and stronger momentum,” as evidenced by its nine-month profit weathering a series of setbacks.

In a media briefing on Monday, SM Prime president Jeffrey Lim described 2025 as a “tough year” for the Philippines, with waves of natural disasters, local and global developments tempering investor and consumer confidence.

“To a certain extent, our results reflect this environment,” he told reporters.

The group’s mall businesses continued to propel growth, accounting for 59 percent of the P103.4 billion in revenues, or P61 billion. This, as SM Prime continues to push for expansion outside the capital region, as well as the launch of new retail and dining concepts.

Hotel and convention centers also gave a bigger contribution at P6 billion, up 9 percent from a year ago.

Its residential segment, while providing more than 31 percent of the top line, dipped 2 percent to P32.6 billion from P33.1 billion.

Revenues from offices and warehouses remained flat at P4 billion.

Lim said macroeconomic conditions had curtailed the performance of the residential and office segments.

Despite posting mixed results, Lim said SM Prime still managed to post “strong” earnings in the first nine months.

The firm’s net income increased by 10 percent to P37.2 billion from P33.9 billion a year ago.

In the third quarter alone, its profit reached P12.8 billion, up 8 percent from P11.8 billion.

“2026 will likely bring its own set of challenges … But I believe SM Prime will be entering 2026 in a sustainable and stronger momentum, given the programs we have set in place. Sustainable growth is something we will look forward to moving forward,” Lim said.

“Every business unit is gearing up for expansion, so the momentum is there,” he said.

It had spent P59.3 billion in capital investments in the first nine months, 11 percent higher than last year, as SM Prime pursues more mall and residential projects.