SM Prime hits record P24.5 billion profit in H1

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August 5, 2025 | 12:00am

MANILA, Philippines — SM Prime Holdings Inc., the integrated property development arm of the Sy family’s SM Group, sees an even better performance in the second half after delivering record-high earnings in the first half on the back of higher rental income, real estate sales and ancillary revenues.

SM Prime registered net income of P24.5 billion from January to June, up by 11 percent from P22.1 billion in the same period in 2024.

“Our results underscore the resilience of our businesses and the strength of our diversified portfolio” SM Prime president Jeffrey Lim said.

Malls contributed the largest share of earnings at 69 percent amounting to  P17 billion, up by 14 percent as a result of new openings, higher foot traffic and strong occupancy.

The residential segment followed, accounting for 21 percent of total earnings.

Income from residential projects improved by two percent to P5.1 billion, supported by revenue recognition from completed units and prior-year sales.

SM Prime’s office and warehouse segment contributed seven percent, with earnings increasing by nine percent to P1.7 billion due to improved warehouse occupancy.

Hotels and convention centers accounted for three percent of total income after contributing P635 million, 20 percent higher year-on-year.

The increase was attributed to strong room bookings and a busy MICE (meetings, incentives, conferences and exhibitions) calendar.

Lim said the redevelopment and new attractions at the company’s flagship Mall of Asia drove strong foot traffic and tenant sales during the first half.

He said robust consumer activity and improving business confidence lifted contributions across the group’s portfolio.

SM Prime’s consolidated revenues rose by five percent to P68 billion during the six-month period, with the bulk coming from rental income from malls, offices, hospitality and MICE.

“Looking at the growth at the first half wherein we register a net income growth of 11 percent as well as a revenue of around five percent, I think that the growth should be aligned leading toward the full year of 2025,” SM Prime chief finance officer John Nai Peng Ong said.

SM Prime remains optimistic for the rest of the year, with expectations of a significantly better performance for the second half compared to the first half, as the company has done so in the past years.

With inflation contained and policy easing underway, the company expects stronger consumer sentiment to drive demand across its businesses.

Lim said the company sees both macro and organic catalysts driving momentum in the second half.

“Moving forward, we also see lower interest rates to drive core residential sales and our business expansion, our regional expansion of malls. We just opened SM Laoag and we will open SM La Union in October. And offices where we are building the core towers will also enhance rental income in the second half,” Lim said.

“We remain optimistic, not just about the rest of the year, but the road ahead. Our strategic expansion in premium residences, key growth regions and integrated developments is designed to drive long term value while reinforcing our commitment to building vibrant future-ready communities,” he said.

SM Prime is also on track with its P100-billion capex plan this year, with investments focused on high-impact developments that will build long-term value.

Ong said the company is looking to tap the bond market by the fourth quarter to raise around P15 billion to P20 billion to refinance maturing debt.