SM Prime Holdings Inc. reported profits of P11.9 billion for the first quarter of the year, higher by 11 percent from the P10.7 billion posted last year.
Attributable profit also rose by 11 percent to P11.7 billion from P10.5 billion a year ago.
“The double-digit expansion was driven by steady revenue growth, margin improvement and disciplined cost management,” SM Prime said in a statement issued after its shareholders meeting.
Revenue grew 7 percent to P32.8 billion from P30.7 billion, attributed to higher rental income, revenue recognition from real estate sales and other revenues.
Earnings before interest, tax, depreciation and amortization rose 12 percent to P20.2 billion from P18.1 billion, while operating income was up 13 percent to P16.7 billion from P14.7 billion.
“Our portfolio is off to a strong and promising start this year. Malls, offices, hotels and convention venues and even residences, posted gains in the first quarter. This speaks to both the resilience of domestic demand and the strength of our integrated development strategy,” said Jeffrey Lim, SM Prime president.
Lim said malls remained the largest contributor to overall profitability, accounting for 69 percent of earnings.
“The segment delivered P8.1 billion, up 13 percent from P7.2 billion a year earlier, because of increased foot traffic, high occupancy and growing interest in experiential offerings,” Lim said.
Residential earnings, meanwhile, grew 4 percent to P2.1 billion from P2 billion, accounting for 18 percent of profit, supported by higher revenue recognition from completed projects and prior year sales.
The office and warehouse segment contributed 10 percent to total net income with earnings rising 15 percent to P1.2 billion from P1 billion last year, driven by strong occupancy and prudent cost management, the company said.
“Hotels and convention centers contributed 3 percent of total net income, posting a 17 percent increase to P362 million from P309 million last year, owing to strong room bookings and a robust calendar of MICE events,” SM Prime also said in a statement.
The company closed the period with assets of P1.05 trillion, up 3 percent from end-2024’s P1.02 billion.
Lim has expressed confidence that the company’s consumer-centric businesses insulate it from the ongoing US trade war.
“While the recently announced US tariff introduce external risks, the Philippines’ predominantly domestic-driven economy and limited direct exposure are expected to help cushion and favorable macreconomic tailwinds will continue to support the strength and growth potential of our portfolio,” he said.
The company is focused on “disciplined execution and staying the course,” Lim added. “We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders.”
In his report to shareholders, Lim said domestic factors like the midterm elections, easing inflation, wage increases and interest rate cuts “are expected to support consumer spending, business activity, and investor confidence.”
He reiterated the company’s plan to spend P100 billion this year to drive growth.
“This capital spending will be funded through a balanced mix of internal cash and debt, including drawdowns from our P100 billion SEC-approved bond-shelf legislation,” he said.
According to Lim, the company’s growth will be anchored by expanding footprint, upgrading existing assets and introducing new experiential features throughout its portfolio.
“We are bringing the SM experience to emerging regional centers, ensuring that our growth story is inclusive, and that progress reaches more communities outside Metro Manila,” he said.
“We are diversifying in bold new directions. We are entering markets that reflect a better way of life for our country, from upscale primary residences to smart, large-scale master-plan urban centers,” he added.
