SY-LED property developer SM Prime Holdings, Inc. reported a net income of P48.8 billion for 2025, up 7% from P45.6 billion a year earlier, supported by revenues from its commercial properties and lower expenses.

Consolidated revenues reached P141.1 billion, slightly higher than P140.4 billion recorded in 2024, the company said in a press statement on Monday.

Revenue from commercial properties, which include rental establishments, increased by 6% to P98.6 billion from P92.6 billion a year earlier.

In the fourth quarter, SM Prime posted a net income of P11.6 billion as lower real estate revenues were offset by reduced costs.

Revenue for the three-month period declined by 7% to P37.7 billion, while costs and expenses fell by 12% to P17.9 billion.

Operating income for the period stood at P19.8 billion.

In a briefing on Monday, SM Prime President Jeffrey C. Lim said external volatilities in the fourth quarter of 2025 “tempered the gains and momentum built earlier in the year.”

“The added volatility sharpened our priorities and reinforced discipline in how we allocate resources, serve our customers, and execute across our businesses. That discipline translated into strong margins, robust earnings, and steady improvements across our businesses,” he said.

Malls accounted for 60% of total revenues in 2025, contributing P85.1 billion, while the residential segment generated P42.5 billion, or 30% of revenues.

Hotels and convention centers accounted for 6% of total revenues at P8.5 billion, while offices and warehouses contributed 4%, or P5.4 billion.

Total costs and expenses declined by 4% to P69.4 billion from P72.4 billion in 2024 due to lower operating expenses, film rentals, insurance, and other expenses.

Capital expenditures in 2025 rose slightly to P81.9 billion from P81.3 billion, with investments mainly directed toward mall, residential, and estate projects, as well as office, hotel, and convention center developments.

SPENDING PLANSFor 2026, SM Prime said it will focus on spending efficiency amid expectations of slower economic growth.

The Philippine economy expanded by 4.4% in 2025, the slowest pace in five years, as adverse weather conditions and governance issues weighed on consumer and investor confidence.

“We will not cut our spending or delay to conserve costs, but we will ensure that our spending is efficient and the returns are very clear,” Mr. Lim said.

The company said it will prioritize the timely completion of projects, strengthen customer engagement, and improve services to sustain traffic and sales.

SM Prime is keeping its capital expenditure (capex) budget at P100 billion this year, Mr. Lim said.

He said that growth in the property sector may vary across segments.

“Our commercial properties, particularly our malls, hotels, and convention centers, are expected to anchor our growth in 2026. The rest will build steadily and contribute as operating conditions improve,” he added.

The company plans to open four new malls this year, which are expected to increase gross floor area by 3% to 4%.

SM Prime is also not planning to acquire new assets this year, Mr. Lim said.

“We are also comfortable with our existing inventory,” he said. “Unless an asset is well-located, and if it fits our integrated development strategy plus the pricing and return criteria, we will probably look into it.”

SM Prime ended 2025 with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 6.61 times.

Total assets rose by 7% to P1.1 trillion, with investment properties valued at cost accounting for 61% of the total. Cash and cash equivalents stood at P27.6 billion.

SM Prime shares on Monday fell by 0.23% or five centavos to close at P21.30 apiece. — Beatriz Marie D. Cruz