• Net income climbs 7 percent to record P48.8 billion
• Commercial property revenues rise over 6 percent to P98.6 billion
• Costs and expenses fall 4 percent, widening margins
• Assets expand to P1.10 trillion with P27.6 billion in cash
Sy-led property giant SM Prime Holdings Inc. set a new earnings benchmark in 2025, delivering record profits as commercial property growth and tighter cost controls strengthened the bottom line.
Net income rose 7 percent to an all-time high of P48.8 billion from P45.6 billion in 2024.
Consolidated revenues the past year increased to P141.1 billion from P140.4 billion
“Operational efficiency played a critical role in our performance in 2025,” said SM Prime president Jeffrey C. Lim. “It enabled us to protect margins and translate modest revenue growth into a solid bottom line.”
Total costs and expenses fell 4 percent to P69.4 billion from P72.4 billion, reflecting lower operating expenses, film rentals, insurance and other charges. The pullback reinforced margins and translated revenue gains into stronger earnings.
“2026 will bring its own set of challenges but with disciplined execution and sharper customer
focus, we expect to sustain our growth momentum,” Lim noted.
Segment drivers
Commercial properties anchored results, with revenues from rental establishments and related businesses climbing more than 6 percent to P98.6 billion from P92.6 billion.
Malls accounted for P85.1 billion or 60 percent of total revenues. Residential developments contributed P42.5 billion or 30 percent. Hotels and convention centers delivered P8.5 billion or 6 percent, while offices and warehouses generated P5.4 billion or 4 percent.
Fourth quarter picture
In the fourth quarter, net income held steady at P11.6 billion. Revenues declined 7 percent to P37.7 billion on lower real estate sales, but costs and expenses dropped nearly 12 percent to P17.9 billion, cushioning earnings and preserving margins.
Balance sheet strength
Capital expenditures in 2025 edged up to P81.9 billion from P81.3 billion, largely directed toward mall, residential and estate projects, with the remainder invested in office, hotel and convention center developments.
Total assets expanded 7 percent to P1.1 trillion from P1 trillion, with investment properties accounting for 61 percent of the asset base. Cash and cash equivalents stood at P27.6 billion.
The company ended the year with a net debt-to-equity ratio of 46 to 54 and an interest coverage ratio of 6.61 times, underscoring manageable leverage and ample capacity to fund growth.
—Edited by Miguel R. Camus
