SM Prime Holdings, Inc. (SM Prime) reported first-half net income of PHP24.5 billion, holding steady from a year earlier, as costs and expenses eclipsed revenue growth.
Total revenues grew 5 percent year-on-year to PHP71.7 billion from P68.0 billion, with rental income from malls, offices, hospitality and MICE accounting for 61 percent. Real estate sales contributed 27 percent, while cinema ticket sales, food and beverage, amusement and related offerings generated the remaining 12 percent.
Costs and expenses during the same period increased nearly 6 percent to PHP35.6 billion from PHP33.6 billion, due to higher depreciation and amortization charges, fixed overhead costs and construction expenses.
“Our focus on tenant relationships, customer experience and cost management supported our performance. Despite challenging market conditions, commercial demand remained resilient across our portfolio,” said Jeffrey C. Lim, SM Prime president.
Mall revenues grew 8 percent to PHP41.8 billion from P38.6 billion on the combined effect of higher occupancy, stronger tenant sales and improved operational efficiency.
Residential revenues, covering core, leisure and premium offerings, slipped 1 percent to PHP20.6 billion from PHP20.9 billion on lower revenue recognition from prior-year sales.
Revenues from hotels and convention centers expanded 8 percent to PHP4.4 billion from PHP4.1 billion owing to higher bookings and average daily room rate.
Office and warehouse revenues rose 9 percent to PHP5.0 billion from PHP4.6 billion, driven by higher space take-up.
Second-quarter consolidated net income rose 1 percent to nearly PHP12.9 billion from PHP12.8 billion, as costs grew in line with revenues.
Total revenues from April to June increased 9 percent to PHP38.4 billion from PHP35.3 billion. Meanwhile, costs and expenses rose nearly 9 percent to PHP19.0 billion from PHP17.5 billion, mainly due to higher construction costs.
As of June 2026, SM Prime’s total assets stood at PHP1.1 trillion. Capital expenditures declined 18 percent to PHP30.7 billion in the first half from PHP37.3 billion a year earlier.
