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Richmond Mercurio - The Philippine Star
April 30, 2025 | 12:00am
MANILA, Philippines — SM Prime Holdings, the integrated property developer of the SM Group, is looking to sustain a double-digit growth for 2025 after kicking off the year on a high note.
In a media briefing yesterday, SM Prime president Jeffrey Lim said the company is optimistic of sustaining its momentum at the start of the year.
“If you look at the first quarter results, we are confident and optimistic that we can sustain this given the developments that we are planning in the next nine months,” Lim said.
“We have a combination of new opening and expansion of existing developments, plus, hopefully we can launch one of our premium residences development before the end of the year. This will add to the growth of the residential development group for 2025,” he said.
SM Prime booked a net income of P11.9 billion in the first quarter, 11 percent higher than the P10.7 billion in the same period last year.
Attributable net income to equity holders, likewise, expanded by 11 percent to P11.7 billion from P10.5 billion.
SM Prime attributed the double-digit expansion to the steady revenue growth, margin improvement and disciplined cost management.
Revenue from January to March improved by seven percent year-on-year to P32.8 billion due to higher rental income, revenue recognition from real estate sales and other revenues.
Malls remained the largest contributor to overall profitability, accounting for 69 percent of earnings.
“Our portfolio is off to a strong and promising start this year. Malls, offices, hotels and convention venues, and even residences, posted gains in the first quarter. This speaks to both the resilience of domestic demand and the strength of our integrated development strategy,” Lim said.
He said that while external uncertainties persist, SM Prime’s focus remains on disciplined execution and staying the course.
“As we navigate 2025, we see a year of both challenges and opportunities for our company, global issues such as geopolitical tensions, trade disputes and climate risks may continue to create downward pressure,” Lim said.
“However, domestic factors like the midterm elections, easing inflation, wage increases and interest rates cuts are expected to support consumer spending, business activity and investor confidence,” he said.
SM Prime believes that while the recently announced US tariffs introduce external risks, the Philippines’ predominantly domestic-driven economy and limited direct exposure are expected to help cushion the impact on the company.
It said the strong consumption and favorable macroeconomic tailwinds will continue to support the strength and growth potential of SM Prime’s portfolio.
“We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders,” Lim said.
