SM Prime Holdings Inc. on Monday reported a seven-percent increase in its 2025 net income of P48.8 billion from P45.6 billion a year earlier, as growth in commercial property revenues and tighter cost controls boosted profitability.
Consolidated revenues reached P141.1 billion, up slightly from P140.4 billion recorded in 2024.
“Operational efficiency played a critical role in our performance in 2025,” SM Prime President Jeffrey Lim said in the company’s earnings release.
“It enabled us to protect margins and translate modest revenue growth into a solid bottom line.”
The mall segment remained the largest revenue contributor at P85.1 billion, accounting for 60 percent of total revenues.
Residential generated P42.5 billion or 30 percent while hotels and convention centers contributed P8.5 billion and offices and warehouses added another P5.4 billion.
Revenue from commercial property — malls, offices, hotels and convention centers — grew more than 6 percent to P98.6 billion from P92.6 billion previously.
Total costs and expenses declined four percent to P69.4 billion from P72.4 billion in 2024 on lower operating expenses, film rentals, insurance and other charges.
In a media briefing, Chief Finance Officer John Nai Peng Ong said fourth-quarter consolidated revenues declined seven percent to P37.7 billion.
“For the fourth quarter of 2025, our consolidated revenue was P37.7 billion. While we did experience a seven-percent decrease in revenues, we improved our total costs and expenses by 12 percent,” Ong said.
He added that operating income for the quarter reached P19.8 billion while net income was steady at P11.6 billion as disciplined expense management cushioned the impact of softer revenues.
Capital expenditures for 2025 were slightly higher at P81.9 billion from P81.3 billion a year earlier, with bulk going to mall, residential and estate developments and the balance spent on office, hotel and convention center projects.
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 seven percent year-on-year to P1.1 trillion, with investment properties accounting for 61 percent of total assets. Cash and cash equivalents stood at P27.6 billion.
SM Prime Holdings shares on Monday slipped P0.05, or 0.23 percent, to close at P21.30 each amid a 0.25-percent drop for the benchmark Philippine Stock Exchange index.
