SM Prime Holdings, Inc. (SM Prime), one of Southeast Asia’s leading integrated property developers, announced today a robust financial performance for the first nine months of the year, driven by its core retail and convention segments.
SM Prime’s net income grew 10 percent year-on-year to P37.2 billion, up from P33.9 billion reported in the same period last year. This growth follows a strong third quarter, during which net income increased by 8 percent to P12.8 billion. Total consolidated revenues for the nine months rose 4 percent to P103.4 billion.
The Mall business remains the company’s powerhouse, accounting for 59 percent of consolidated revenues, which increased 7 percent to P61.0 billion.
“Our malls remain strong anchors for growth,” said SM Prime President Jeffrey C. Lim. “Their performance was driven by regional expansion, the upgrading of flagship malls, and the introduction of more experiential retail and dining concepts. This strategy solidifies our position as a leading destination for community and commerce.”
Supporting the overall performance, the Hotels and Convention Centers segment recorded the strongest percentage growth, rising 9 percent to P6.0 billion, primarily due to higher MICE (Meetings, Incentives, Conventions, and Exhibitions) bookings. This segment contributed nearly 6 percent to consolidated revenues.
The Residential segment contributed over 31 percent of total revenues at P32.6 billion, tempered slightly by slower revenue recognition from mid-segment developments. Similarly, revenues from Offices and Warehouses remained steady at P4.0 billion, impacted by temporary tenant relocations during ongoing renovation works.
“Macroeconomic conditions tempered the residential and office segments, but recovery initiatives are underway,” Mr. Lim added.
SM Prime continued to invest heavily in future expansion, with Capital Expenditures reaching P59.3 billion in the first nine months—an 11 percent increase compared to the previous year. These investments were primarily directed toward ongoing mall and residential projects. The company maintained a healthy financial position, ending the period with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 7.1x. Total assets stood at P1.08 trillion.
