INTEGRATED property developer SM Prime Holdings Inc. said mall foot traffic and net income remained stable in the first quarter even as the company decided to review capital spending plans amid rising costs brought about by continuing global uncertainties.
“It’s exactly the same... we were able to sustain the same foot traffic as [in the] first quarter [of] last year, but sales went up to nearly double-digit [levels],” SM Supermalls President Steven Tan said during a media briefing on Tuesday.
Tan said the company had noted resilient consumer activity despite higher fuel costs and geopolitical tensions.
SM Prime President Jeffrey Lim said the group was reviewing its P100-billion capital expenditure program for 2026, conceding there could be a possible deferral of some projects.
“There are certain locations that we... decided probably, maybe we should not pursue yet and move [them] to next year,” Lim said. “There are also those [projects] that are supposedly for redevelopment that we think can be deferred.”
He said the group was taking a “holistic” approach in managing risks, taking into account the impact of rising costs not only on its operations but also on tenants, suppliers and contractors.
Against this backdrop, SM Prime posted a net income of P11.66 billion in the first quarter, nearly unchanged from a year earlier, as gains from recurring income offset weaker real estate sales and higher expenses.
Revenues rose two percent to P33.3 billion, supported by stronger rental income that grew eight percent to P21.6 billion on improved mall and office occupancy. Other revenues also increased on higher spending for dining and entertainment.
“Recurring income will remain central to our performance in 2026,” Lim said, adding that the company was now prioritizing occupancy, customer experience, and cost discipline.
Real estate sales declined 16 percent to P7.8 billion, weighed down by slower revenue recognition and cancellations.
Expenses rose three percent to P16.6 billion, mainly due to higher depreciation and fixed costs, limiting profit growth.
Malls remained the largest contributor to revenues, followed by residential, office and hospitality segments. Hotels and convention centers posted gains on improved occupancy and room rates, while office revenues rose on better leasing activity.
SM Prime ended the quarter with total assets of P1.1 trillion and capital expenditures of P15.5 billion.
The board also approved a cash dividend of P0.42 per share, amounting to a total of about P12.2 billion, payable on May 27, 2026 to shareholders on record as of May 13.
SM Prime shares on Tuesday slipped P0.20, or 1.02 percent, to P19.40 each.
