SM malls post record H1 revenues as customer strategy drives growth

Insider Spotlight

• SM Supermalls posted record first-half revenue of P41.8 billion, up 8 percent year on year, driven by portfolio expansion and higher tenant sign-ups
• The mall operator expanded its gross leasable area to 5.1 million square meters and grew its tenant base to more than 23,000 while maintaining steady daily foot traffic
• SM is accelerating its customer-focused transformation through new leisure offerings, sustainability investments, and the planned opening of SM Nuvali
  
  
  

SM Supermalls reported a record first-half revenue of P41.8 billion, up 8 percent from P38.6 billion a year earlier, as higher leasable space, increased tenant sign-ups, and resilient shopper traffic supported its portfolio transformation strategy.

The mall operator expanded its total gross leasable area by 3 percent to 5.1 million square meters from 5.0 million square meters, while its tenant count rose 4 percent to 23,174 from 22,192. Average daily foot traffic remained steady at 3.7 million visitors despite broader macroeconomic headwinds.

The big picture

SM said the results underscore the resilience of its business model as it continues to invest in customer-focused experiences and expand its nationwide footprint.

“Our growth reflects the enduring trust of our tenants and shoppers. Despite macroeconomic headwinds, they continue to find value in the variety of our offerings and the strong sense of community in our malls,” SM Supermalls president Steven Tan said in a press briefing. “This gives us confidence to keep investing in spaces and experiences that respond to their changing needs.”

The company continued diversifying beyond traditional retail by expanding sports, leisure, and entertainment offerings across its properties. During the first half, it added 41 pickleball courts, bringing its total to 102 courts across 32 malls nationwide.

Driving engagement

SM also co-hosted the Galaxy Manila Marathon on June 12, the first full marathon staged along EDSA, attracting more than 25,000 runners across multiple race categories.

Alongside experiential investments, the company strengthened its sustainability initiatives. Solar power generation from rooftop photovoltaic systems increased to 122 megawatt peak from 100 megawatt peak, while all 90 SM malls now offer free electric vehicle charging through a network of 203 charging stations.

The company's customer-centric strategy earned external recognition. Brand Finance named SM Supermalls the Philippines' Strongest Brand for the second consecutive year after it achieved a Brand Strength Index score of 95.3 out of 100, retaining its AAA+ rating in the Philippines 50 2026 report.

What's next

SM said it will continue executing its five-year My SM transformation platform by introducing new retail brands, entertainment concepts, and leisure attractions designed around evolving consumer preferences.

“Our growth plan for the rest of 2026 and beyond is to continue evolving for our customers. SM will keep building business momentum through the introduction of exciting new brands, cinema and entertainment acts, as well as leisure offerings that will sustain market interest." Tan said. 

"With the upcoming opening of our 91st mall, SM Nuvali, we are expanding our business footprint in the emerging growth corridor of South Luzon and Calabarzon with an innovative upscale mall concept never experienced in the Philippine market before,” Tan added. — Daxim L. Lucas | Ed: Corrie S. Narisma