The Sy family's property giant generated P103.1 billion in revenues, virtually unchanged from a year earlier, as real estate sales fell 23 percent to P24 billion while rental income climbed 8 percent to P66 billion.
“Higher borrowing costs, elevated inflation and cautious consumer spending continued to weigh on residential demand,” SM Prime president Jeffrey Lim said in a statement on Monday.
“However, growth in our commercial and hospitality businesses helped keep revenues steady,” he added.
Malls provide stability
The slowdown was more pronounced in the third quarter, when net income declined 15 percent to P10.9 billion as revenues eased 11 percent to P31.4 billion.
Residential revenues fell 21 percent to P25.6 billion in the first nine months, reflecting slower recognition of property sales amid more cautious homebuyer demand.
Malls remained SM Prime's largest business, contributing 62 percent of total revenues as sales rose 10 percent to P63.7 billion, supported by higher occupancy, additional leasable space and demand for dining and entertainment.
Investments continue
Other businesses also contributed to growth, with office and warehouse revenues rising 10 percent to P7.8 billion, while hotels and convention centers gained 7 percent to P6.4 billion.
SM Prime spent P44.4 billion on capital expenditures, down 25 percent from a year earlier, as it continued developing malls, residential properties and other commercial projects.
The company ended September with P1.1 trillion in assets, P27.9 billion in cash and a net debt-to-equity ratio of 0.84 times.
With rental income providing a steady earnings base, SM Prime enters 2027 with its diversified portfolio helping offset softer conditions in the residential market.
—Edited by Miguel R. Camus
