SM Prime Holdings Inc. on Monday reported a net income of P24.5 billion for first half, flat versus the same period last year, as higher costs and expenses partially offset revenue growth.
The property developer on said net income for January-June was unchanged compared with the first six months of 2025, when earnings had grown 11 percent year on year.
Consolidated revenues increased five percent to P71.7 billion from P68 billion while costs and expenses rose nearly six percent to P35.6 billion from P33.6 billion.
The higher expenses were attributed largely to increased depreciation and amortization charges, fixed overhead costs and construction expenses.
“Our focus on tenant relationships, customer experience and cost management supported our performance,” SM Prime President Jeffrey Lim said.
“Despite challenging market conditions, commercial demand remained resilient across our portfolio.”
Rental income from malls, offices, hospitality and meetings, incentives, conferences and exhibitions (MICE) accounted for 61 percent of first-half revenues. Real estate sales contributed 27 percent while cinema ticket sales, food and beverage, amusement and related offerings made up the remaining 12 percent.
Mall revenues increased eight percent to P41.8 billion from P38.6 billion, supported by higher occupancy, stronger tenant sales and improved operational efficiency.
Residential revenues — covering core, leisure and premium offerings — slipped one percent to P20.6 billion from P20.9 billion as revenue recognition from prior-year sales declined.
Hotels and convention center saw revenues rise eight percent to P4.4 billion from P4.1 billion previously on higher bookings and average daily room rates.
Office and warehouse revenues rose nine percent to P5 billion from P4.6 billion on higher space take-up.
SM Prime said the second quarter likewise delivered modest earnings growth, with consolidated net income edging up one percent to nearly P12.9 billion from P12.8 billion a year earlier.
Second-quarter revenues increased nine percent to P38.4 billion from P35.3 billion while costs and expenses grew nearly nine percent to P19 billion from P17.5 billion, mainly due to higher construction costs.
SM Prime said capital expenditures declined 18 percent to P30.7 billion in the first half from P37.3 billion a year earlier. As of end-June 2026, the company reported total assets of P1.1 trillion.
The company’s shares rose P0.10, or 0.55 percent, to close at P18.30 each on Monday, outperforming a flat broader market, with the benchmark Philippine Stock Exchange index down by a marginal 0.02 percent.
