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SM Prime Holdings, Inc. (SM Prime), one of Southeast Asia’s largest integrated property developers, is confident of sustaining its first quarter performance as it continues to expand its core mall, residential, office, and hotels and convention center businesses.
“We do not give full-year guidance but, 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,” said SM Prime President and CEO Jeffrey C. Lim in a press briefing after the firm’s annual stockholders’ meeting.
He added that, “We have a combination of new opening and expansion of existing developments plus, hopefully, we can launch one of our premium residential developments before the end of the year.”
SM Prime posted a net income of ₱11.9 billion in the first quarter of 2025, up 11 percent from ₱10.7 billion in the same period last year. Attributable net income likewise increased 11 percent, rising from ₱10.5 billion to ₱11.7 billion.
“The double-digit expansion was driven by steady revenue growth, margin improvement and disciplined cost management,” the company said.
Total revenue rose seven percent year-on-year from ₱30.7 billion to ₱32.8 billion due to higher rental income, revenue recognition from real estate sales and other revenues.
EBITDA grew 12 percent from ₱18.1 billion to ₱20.2 billion, while operating income expanded 13 percent from ₱14.7 billion to ₱16.7 billion.
“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,” said Lim
Malls remained the largest contributor to overall profitability, accounting for 69 percent of earnings. The segment delivered ₱8.1 billion, up 13 percent from ₱7.2 billion a year earlier, because of increased foot traffic, high occupancy and growing interest in experiential offerings.
Residential earnings rose four percent to ₱2.1 billion from ₱2.0 billion, accounting for 18 percent of SM Prime’s net income for the quarter. The upturn was supported by higher revenue recognition from completed projects and prior-year sales.
The office and warehouse segment contributed 10 percent to total net income, with earnings rising 15 percent to ₱1.2 billion from ₱1.0 billion last year. Stronger occupancy and prudent cost management contributed to the improved performance.
Hotels and convention centers contributed three percent of total net income, posting a 17 percent increase to ₱362 million from ₱309 million last year, owing to strong room bookings and a robust calendar of MICE events.
“While external uncertainties persist, our focus remains on disciplined execution and staying the course. We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders,” said Lim.
Reinforcing its commitment to shareholder returns, SM Prime’s Board of Directors meeting held on April 29, 2025, approved the declaration of a regular cash dividend amounting to 25 percent, plus an additional five percent special dividend, of 2024 net income amounting to ₱0.48 per share.
The cash dividends declared totals to approximately ₱13.86 billion. Dividends will be payable on May 28, 2025 to shareholders of record as of May 14, 2025.
