SM Prime Holdings, Inc. (SM Prime) saw its net income expand to PHP48.8 billion in 2025, a 7-percent jump from PHP45.6 billion the previous year. Growth was driven by stronger commercial property revenues and disciplined cost management.
Consolidated revenues reached PHP141.1 billion, slightly higher than the PHP140.4 billion booked the previous year. The mall segment contributed P85.1 billion, accounting for 60 percent of total revenues, followed by residential (30%) at PHP42.5 billion, hotels and convention centers (6%) at PHP8.5 billion, and offices and warehouses (4%) at PHP5.4 billion.
Revenue contribution from commercial properties, which include rental establishments, grew by over 6% from PHP92.6 billion to PHP98.6 billion.
“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.”
Total costs and expenses declined by 4 percent from PHP72.4 billion to PHP69.4 billion on lower operating expenses, film rentals, insurance and other expenses.
“2026 will bring its own set of challenges but with disciplined execution and sharper customer focus, we expect to sustain our growth momentum,” said Lim.
In the fourth quarter, SM Prime’s net income was steady at PHP11.6 billion, as lower real estate revenues were offset by reduced costs. Topline declined by 7 percent to PHP37.7 billion, while costs and expenses fell nearly 12 percent to PHP17.9 billion.
Capital expenditures in 2025 slightly improved from PHP81.3 billion to PHP81.9 billion, with the bulk spent on mall, residential and estate projects. The remainder was invested in office, hotel and convention center developments.
SM Prime ended the period with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 6.61x. Total assets increased by 7 percent from PHP1 trillion to PHP1.1 trillion, with investment properties (valued at cost) accounting for 61 percent. Cash and cash equivalents stood at PHP27.6 billion.
