SM Prime Net Income Rose 7% to P48.8B in 2025

Why It Matters

The earnings boost underscores SM Prime’s resilience in a competitive Philippine retail market and signals solid cash flow for future expansion, reassuring investors and lenders alike.

Key Takeaways

• Net income up 7% to P48.8 billion.
• Commercial revenues grew 6% to P98.6 billion.
• Total expenses fell 4% to P69.4 billion.
• Assets reached P1.1 trillion, up 7%.
• Debt‑to‑equity ratio improved to 46:54.

Pulse Analysis

SM Prime Holdings’ 2025 results highlight how a diversified property portfolio can sustain profitability even when overall revenue growth is modest. The company’s core mall operations generated P85.1 billion, accounting for 60% of total revenue, while residential and hotel segments added depth. By tightening expense management—cutting costs by 4%—the firm translated marginal top‑line gains into a notable 7% net‑income increase, a performance metric that investors watch closely in the Philippine retail real estate space.

The stronger commercial‑property earnings reflect a rebound in consumer foot traffic and higher tenant sales, driven by post‑pandemic economic recovery and rising disposable incomes. SM Prime’s ability to grow commercial revenue by 6% while keeping operating expenses in check demonstrates effective cost discipline, a competitive advantage as rivals grapple with rising labor and utility costs. Moreover, the modest decline in quarterly revenue, offset by lower expenses, suggests the company can weather short‑term market fluctuations without sacrificing profitability.

Looking ahead, SM Prime’s capital‑expenditure plan of P81.9 billion signals confidence in continued expansion of malls, residential estates, and mixed‑use developments. The expanded asset base of P1.1 trillion and a healthier debt‑to‑equity ratio improve balance‑sheet resilience, positioning the firm to fund future projects and potentially return capital to shareholders. For analysts and investors, these fundamentals reinforce SM Prime’s status as a bellwether for the Philippine property sector, offering both growth potential and a stable earnings foundation.

SM Prime net income rose 7% to P48.8B in 2025

By Emmanuel John B. Abris · @inquirerdotnet · Philippine Daily Inquirer · 02:23 PM February 16, 2026

MANILA, Philippines – Sy family‑led SM Prime Holdings, Inc. posted a 7‑percent increase in net income to P48.8 billion in 2025, driven by stronger commercial‑property revenues and lower costs.

In a disclosure statement on Monday, the property giant said consolidated revenues inched up to P141.1 billion from P140.4 billion a year earlier, with malls contributing the bulk at P85.1 billion (60 % of total revenues).

Read: Built‑around‑the‑Filipino‑SM‑Prime‑Across‑Generations

Residential developments accounted for P42.5 billion, followed by hotels and convention centers at P8.5 billion, and offices and warehouses at P5.4 billion.

Revenue from commercial properties rose over 6 % to P98.6 billion from P92.6 billion previously.

SM Prime said disciplined cost management helped lift earnings, with total costs and expenses dropping 4 % to P69.4 billion from P72.4 billion.

Assets

In the fourth quarter, net income was steady at P11.6 billion as lower real‑estate revenues were offset by reduced costs. Revenues for the quarter declined 7 % to P37.7 billion, while expenses fell nearly 12 % to P17.9 billion.

Capital expenditures slightly increased to P81.9 billion in 2025, largely spent on mall, residential and estate projects.

Total assets grew 7 % to P1.1 trillion, with investment properties accounting for 61 % of the total. The company ended the year with a net debt‑to‑equity ratio of 46:54 and an interest‑coverage ratio of 6.61 times.