SM Prime income up 7% to P48.8 billion in 2025

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February 17, 2026 | 12:00am

MANILA, Philippines — SM Prime Holdings Inc. sees sustained growth momentum this year after finishing 2025 on a high note, posting a seven-percent jump in net income to P48.8 billion from P45.6 billion in the previous year.

“2026 will bring its own set of challenges but with disciplined execution and sharper customer focus, we expect to sustain our growth momentum,” SM Prime president Jeffrey Lim said.

Lim said the company expects the property sector to continue improving, although growth will likely be uneven across segments.

“We expect the same trend within our own portfolio. Our commercial properties, particularly our malls, hotels and convention centers, are expected to anchor our growth in 2026. The rest will build steadily and contribute as operating conditions improve,” he said.

“Overall, we are optimistic about 2026. This year, we are completing projects that will expand our company to broader regional presence, higher capacity and deeper community impact. This expansions, together with our strong balance sheet, recurring income and project pipeline, will allow us to perform well despite a more cautious operating environment,” Lim said.

The integrated property development arm of the Sy family’s SM Group attributed last year’s profit growth to stronger commercial property revenues and disciplined cost management.

The company generated revenues of P141.1 billion in 2025, slightly higher than the P140.4 billion booked in the previous year, with the mall segment accounting for 60 percent at P85.1 billion, followed by residential at P42.5 billion, hotels and convention centers at P8.5 billion and offices and warehouses at P5.4 billion.

In the fourth quarter alone, SM Prime’s net income was steady at P11.6 billion, as lower real estate revenues were offset by reduced costs, while revenues for the three-month period declined by seven percent year-on-year to P37.7 billion.

“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.

Lim said SM Prime is allocating around P100 billion in capital expenditures this year to fund the group’s continuing expansion.

Last year, the company’s capex was at P81.9 billion, with the bulk spent on mall, residential and estate projects. Lim said the company wants to be more strategic in terms of deploying capital for 2026.

“We will be disciplined in terms of our capex. Every peso that we will spend should generate value for our stakeholders. We will not cut our spending or delay to conserve cash, but will ensure that our spending efficient and returns are very clear before we commit to this capital,” Lim said.