SM Prime Holdings, Inc. (SM Prime), one of the largest integrated property developers in Southeast Asia, expects to sustain record income growth and revenue growth throughout 2025, driven by easing inflation, a recovering real estate market, new mall openings, and lower interest rates.
This followed a company’s disclosure on Monday, August 4, wherein it reported an all-time high net income of PHP24.5 billion for the first half of 2025, reflecting an 11 percent increase from PHP22.1 billion in the same period last year.
During a press conference, Chief Finance Officer John Nai Peng C. Ong said the company is looking at the first-half growth—an 11 percent increase in net income and around 5 percent in revenue as growth guidance for the entire 2025. “I think that growth should be aligned leading towards the whole year of 2025,” said Ong.
SM Prime President Jeffrey C. Lim also cited easing inflation and wage adjustments for workers in the National Capital Region as key factors supporting household consumption and contributing to the company’s optimism.
He further highlighted that lower interest rates are expected to drive core residential sales and business expansion. Mall expansion in the provinces will also contribute to revenue growth. SM Prime recently opened SM Laoag and is scheduled to open SM La Union in October this year.
“The redevelopment and new attractions at our flagship Mall of Asia drove strong foot traffic and tenant sales. Robust consumer activity and improving business confidence also lifted contributions across our portfolio,” said Lim.
For the first half of 2025, SM Prime’s consolidated revenues rose 5 percent year-on-year, from PHP64.7 billion to PHP68 billion. Rental income from malls, offices, hospitality, and MICE (Meetings, Incentives, Conferences, and Exhibitions) contributed 60 percent of the total. Real estate sales made up 29 percent, while the remaining 11 percent came from cinema ticket sales, food and beverage, amusement, and related offerings.
First-half EBITDA rose 10 percent to PHP41.6 billion from PHP37.9 billion, while operating income increased 11 percent to PHP34.4 billion from PHP31.1 billion.
Malls accounted for the largest share of earnings at 69 percent, contributing PHP17 billion—up 14 percent year-on-year—boosted by new openings, higher foot traffic, and strong occupancy rates.
Income from residential projects rose 2 percent, from PHP5.0 billion to PHP5.1 billion, supported by revenue recognition from completed units and prior-year sales. The segment accounted for 21 percent of total earnings.
The office and warehouse segment contributed 7 percent, with earnings increasing 9 percent from PHP1.6 billion to PHP1.7 billion, owing to improved warehouse occupancy.
Hotels and convention centers accounted for 3 percent of total income, contributing PHP635 million—up 20 percent from PHP527 million. The increase was driven by strong room bookings and a busy MICE calendar.
“Our results underscore the resilience of our businesses and the strength of our diversified portfolio. With our capex program progressing as planned, we are well-positioned to drive long-term growth across key markets,” said Lim.
