Nelson Morales

SM eyes launching new major projects in 2026 as income climbs to P48.8 billion in 2025

Philippines economy flag and commerce and investments around SM Mall of Asia. July 4, 2017. Jonathan Cellona, ABS-CBN News

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA -- SM Prime Holdings said it remains optimistic for 2026 despite an &quot;unexpected setback&quot; in the fourth quarter, with the property giant looking to complete new major projects this year.The Sy-led property giant said its net income expanded 7 percent to P48.8 billion in 2025 from P45.6 billion the previous year. This was despite income staying flat in the fourth quarter at P11.6 billion.&quot;Growth was driven by stronger commercial property revenues and disciplined cost management,&quot; SM Prime said in a statement.The company said consolidated revenues reached P141.1 billion, slightly higher than the P140.4 billion booked the previous year. Malls contributed P85.1 billion, accounting for 60 percent of total revenues, followed by residential (30 percent) at P42.5 billion, hotels and convention centers (6 percent) at P8.5 billion, and offices and warehouses (4 percent) at P5.4 billion.SM Prime President Jeffrey Lim said 2025 continued to test the resilience of the property sector.&quot;The fourth quarter, in particular, was an unexpected setback that tempered the gains and momentum built earlier in the year. For SM Prime, 2025 was a year of recalibration,&quot; Lim said during an online briefing with journalists.SM Prime officials noted that the sector was affected by the infrastructure scandals hounding the government, which saw public spending drop even as remittances from overseas Filipinos, and the BPO sector continued to post significant growth.Lim however said that the company was able to rely on operational efficiency in 2025 to continue delivering solid performance.&quot;It enabled us to protect margins and translate modest revenue growth into a solid bottom line.”SM Prime said total costs and expenses declined by 4 percent from P72.4 billion to P69.4 billion on lower operating expenses, film rentals, insurance and other expenses.Lim meanwhile said the company expects the property sector to continue improving, and SMPH to continue growing this year &quot;despite a more cautious operating environment.&quot;&quot;Overall, we are optimistic about 2026. This year, we are completing projects that will expand our company through broader regional presence, higher capacity, and deeper community impact,&quot; Lim said.SM Prime said its total assets increased by 7 percent from P1 trillion to P1.1 trillion, with investment properties (valued at cost) accounting for 61 percent.

SM Prime Holdings said it remains optimistic for 2026 despite an "unexpected setback" in the fourth quarter, with the property giant looking to complete new major projects this year.

SM Prime Holdings said it remains optimistic for 2026 despite an "unexpected setback" in the fourth quarter, with the property giant looking to complete new major projects this year.