SY-LED property developer SM Prime Holdings, Inc. (SM Prime) posted an 8% year-on-year increase in third-quarter (Q3) net income to P12.8 billion from P11.8 billion in the same period last year, lifted by contributions from its mall and hotel and convention center businesses.
“I think we should still be able to grow our Q4 numbers, although it might not be the same level as what we have seen in the past due to slower economic growth in the Philippines,” SM Prime President Jeffrey C. Lim said during a briefing on Monday.
“Our malls remain strong anchors for growth,” he added. “Their performance was driven by regional expansion, the upgrading of flagship malls, and the introduction of more experiential retail and dining concepts.”
Total revenues for Q3 were not disclosed in the press release, and the company has yet to release its full quarterly report.
For the first nine months of 2025, SM Prime’s net income grew 10% to P37.2 billion from P33.9 billion a year earlier, with total revenues rising 4% to P103.4 billion from P99.8 billion.
Malls accounted for 59% of consolidated revenues, posting 7% growth to P61 billion due to additional tenants and leasable space.
“The residential and office segments were tempered by macroeconomic conditions, but recovery initiatives are underway,” Mr. Lim said.
The residential segment, covering both core and leisure projects, contributed P32.6 billion, down 2% from P33.1 billion.
SM Prime currently has 26,000 residential units, split roughly evenly between high-rise and mid-rise buildings, Chief Financial Officer John Nai Peng C. Ong said.
Hotels and convention centers rose 9% to P6 billion, nearly 6% of total revenues.
Revenues from offices and warehouses remained steady at P4 billion, roughly 4% of the total.
“Hopefully, the government will start to work on improving economic growth moving forward, and we expect that SM Prime will be able to meet its objective for the full-year of 2025,” Mr. Lim said. The company remains on track to meet or exceed its P45-billion full-year 2024 net income, he added.
SM Supermalls President Steven T. Tan noted that phase four of SM City Xiamen’s redevelopment is set for completion in early 2026, while SM City Xiamen Haicang is currently 90% occupied.
Capital expenditures in the first nine months totaled P59.3 billion, up 11% from the previous year, largely directed toward ongoing mall and residential projects, with the remainder allocated to estate, hotel, and convention center developments.
SM Prime ended September with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 7.1x. Total assets reached P1.08 trillion, with investment properties representing 60% of the total, while cash and cash equivalents stood at P33.2 billion.
On the local bourse on Monday, SM Prime shares fell 1.45% or P0.30 to close at P20.40 apiece. — Beatriz Marie D. Cruz
