SM Prime delivers record profit of P48.8B

Property giant SM Prime Holdings Inc. delivered a record-high P48.8-billion net income in 2025, driven by stronger commercial property revenues and tighter cost controls.

Reinforcing the resilience of its mall-anchored business, SM Prime grew its net income last year by 7 percent, topping the performance in 2024, which was then likewise a banner year.

In a statement on Monday, the Sy family-led firm said consolidated revenues had edged up in 2025 to P141.1 billion from P140.4 billion a year earlier. Malls remained the biggest contributor at P85.1 billion or 60 percent of total revenues.

Residential developments accounted for P42.5 billion, followed by hotels and convention centers at P8.5 billion and offices and warehouses at P5.4 billion.

Commercial properties—which include malls, offices, hotels and convention centers—continued to anchor growth, with revenues rising more than 6 percent to P98.6 billion from P92.6 billion previously.

SM Prime president Jeffrey Lim said operational efficiency helped translate modest revenue gains into stronger earnings.

“Operational efficiency played a critical role in our performance in 2025. It enabled us to protect margins and translate modest revenue growth into a solid bottom line,” Lim said.

Unlocking efficiency

This came as total costs and expenses declined 4 percent to P69.4 billion from P72.4 billion, reflecting lower operating and other related expenses.

In the fourth quarter alone, net income held steady at P11.6 billion as lower real estate revenues were offset by reduced costs.

Revenues fell 7 percent to P37.7 billion, while expenses dropped nearly 12 percent to P17.9 billion.

SM Prime continued to invest heavily in expansion, spending P81.9 billion in capital expenditures in 2025, slightly higher than the previous year. Most of these investments went to mall, residential and estate developments, with the remainder allocated to office, hotel and convention center projects.

For 2026, the company expects to increase capital spending to about P100 billion as it continues to expand its portfolio, particularly its retail and commercial segments.

See Also

Hardest problem in family business isn’t strategy. It’s role confusion

The company plans to be more “strategic” in deploying capital while sustaining growth momentum.

Lim said the company remained optimistic about its outlook despite challenges, citing continued contributions from its core businesses.

SM Prime ended 2025 with total assets rising 7 percent to P1.1 trillion.

Investment properties accounted for the bulk of assets, while cash and cash equivalents stood at P27.6 billion.

The company maintained a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 6.61 times, reflecting healthy leverage levels.