SM Prime Holdings, Inc. (SM Prime) reported first-half net income of P24.5 billion, holding steady from a year earlier, as costs and expenses eclipsed revenue growth.
Total revenues grew 5 percent year-on-year to P71.7 billion from P68.0 billion, with rental income from malls, offices, hospitality and MICE accounting for 61 percent. Real estate sales contributed 27 percent, while cinema ticket sales, food and beverage, amusement and related offerings generated the remaining 12 percent.
Costs and expenses during the same period increased nearly 6 percent to P35.6 billion from P33.6 billion, due to higher depreciation and amortization charges, fixed overhead costs and construction expenses.
“Our focus on tenant relationships, customer experience and cost management supported our performance. Despite challenging market conditions, commercial demand remained resilient across our portfolio,” said Jeffrey C. Lim, SM Prime president.
Mall revenues grew 8 percent to P41.8 billion from P38.6 billion on the combined effect of higher occupancy, stronger tenant sales and improved operational efficiency.
Residential revenues, covering core, leisure and premium offerings, slipped 1 percent to P20.6 billion from P20.9 billion on lower revenue recognition from prior-year sales.
Revenues from hotels and convention centers expanded 8 percent to P4.4 billion from P4.1 billion owing to higher bookings and average daily room rate.
Office and warehouse revenues rose 9 percent to P5.0 billion from P4.6 billion, driven by higher space take-up.
Second-quarter consolidated net income rose 1 percent to nearly P12.9 billion from P12.8 billion, as costs grew in line with revenues.
Total revenues from April to June increased 9 percent to P38.4 billion from P35.3 billion. Meanwhile, costs and expenses rose nearly 9 percent to P19.0 billion from P17.5 billion, mainly due to higher construction costs.
As of June 2026, SM Prime’s total assets stood at P1.1 trillion. Capital expenditures declined 18 percent to P30.7 billion in the first half from P37.3 billion a year earlier.
