SM Prime delivers record P48.8 billion net income in 2025

SM Prime Holdings, Inc. (SM Prime), one of Southeast Asia’s leading integrated property developers, reported a 7% increase in consolidated net income, reaching P48.8 billion for the full year of 2025. This growth, up from P45.6 billion in 2024, underscores the company’s ability to maximize profitability through operational efficiency and a robust commercial portfolio.

While consolidated revenues saw a steady climb to P141.1 billion, the company’s bottom line was significantly bolstered by disciplined cost management. Total costs and expenses were reduced by 4%, falling to P69.4 billion from P72.4 billion the previous year.

Key Revenue Drivers:

• Mall Business: Remained the primary engine of growth, contributing P85.1 billion (60% of total revenues).

• Residential Segment: Accounted for P42.5 billion (30% of total revenues).

• Commercial Properties: Revenues from rentals and commercial spaces grew by over 6%, rising to P98.6 billion.

• Hotels & Convention Centers: Contributed P8.5 billion (6%).

• Offices & Warehouses: Generated P5.4 billion (4%).

The 2025 results highlight a “quality over quantity” approach to growth. Despite a modest increase in the topline, SM Prime successfully protected its margins. “Operational efficiency played a critical role in our performance in 2025,” said SM Prime President Jeffrey C. Lim. “It enabled us to protect margins and translate modest revenue growth into a solid bottom line. With disciplined execution and a sharper customer focus, we expect to sustain our growth momentum into 2026.”

In the fourth quarter of 2025, SM Prime maintained a steady net income of P11.6 billion. Although the quarterly topline saw a 7% dip to P37.7 billion due to lower real estate revenues, the impact was neutralized by a significant 12% reduction in operating costs.

The company continues to invest in the future of Philippine infrastructure, with Capital Expenditure (CAPEX) increasing to P81.9 billion in 2025. These investments were primarily directed toward:

1. Mall and Residential developments

2. Large-scale Estate projects

3. Expansion of Office and Hospitality portfolios

SM Prime concludes the year in a position of high liquidity and financial stability:

• Total Assets: Increased 7% to P1.1 trillion.

• Net Debt-to-Equity: 46:54.

• Interest Coverage Ratio: 6.61x.

• Cash Position: P27.6 billion in cash and cash equivalents.