SM Prime Holdings Inc. (SM Prime), one of Southeast Asia’s largest integrated property developers, reaffirmed its leadership in Philippine real estate with the announcement of a transformative three-pronged strategy during its 2025 Annual Stockholders’ Meeting held on April 29.
Focused on organic expansion, regional development, and strategic diversification, the roadmap underscores SM Prime’s commitment to building sustainable, people-centered communities across the country. “Our approach is deliberate and forward-looking. Every project is meant to improve how Filipinos live, work, and connect,” said Jeffrey C. Lim, President of SM Prime, emphasizing the company’s vision to enhance everyday life through innovative real estate solutions.
In the near term, SM Prime plans to expand its mall portfolio by over 316,000 square meters of new gross floor area, while redeveloping more than 309,000 square meters of existing space to improve asset utilization, elevate customer experience, and strengthen recurring income streams.
The company is also accelerating its expansion into high-growth provincial areas, with new malls slated to open in Laoag, La Union, and Zamboanga by 2025. These developments aim to spur regional economies while bringing modern lifestyle amenities to underserved markets.
Diversification plays a key role in SM Prime’s long-term growth, with a strategic pivot into premium residential developments and integrated urban estates. These projects will integrate sustainability, digital infrastructure, and resilience to meet the demands of the evolving real estate landscape. “For certain developments that we have already planned and have strong confidence in, we will pursue them on our own. However, if the project requires additional expertise or broader organizational support, we are more than willing to bring in partners,” said Jose Juan Z. Jugo, Executive Vice President for the premium residential segment.
SM Prime’s premium residential brand, set to launch in Metro Manila, will feature homes priced from ₱15 million and above, with expansion plans to other regions based on market demand.
Backed by a ₱100 billion capital expenditure plan for 2025, SM Prime is positioning itself to future-proof its portfolio while continuing to deliver strong shareholder returns.
As of March 2025, the company’s total assets rose to ₱1.05 trillion, a 3% increase from year-end 2024. First-quarter 2025 results showed robust growth, with net income rising 11% year-on-year to ₱11.9 billion, driven by solid revenue performance and disciplined cost controls.
SM Development Corporation (SMDC), the company’s residential arm, contributed ₱2.1 billion in earnings in Q1 2025, up 4% year-on-year. Reservation sales reached ₱11.6 billion, with expectations for full-year sales reservations to grow by 5% to 10%. “Our first quarter numbers are aligned with our full-year outlook,” said Grace Sta. Ana, Executive Vice President of SMDC. “We are on track to meet our growth targets as demand remains steady across residential developments.”
With a strong financial foundation, expansive vision, and a clear focus on sustainability and innovation, SM Prime is poised to lead the next era of real estate development in the Philippines.
