Village Connect
SM Prime Holdings, Inc. (SM Prime) continued its upward trajectory as it posted a nine-month net income of ₱37.2 billion, marking a 10% increase from ₱33.9 billion in the same period last year. The third quarter alone contributed ₱12.8 billion, up by 8% year-on-year, underscoring the company’s sustained post-pandemic recovery and strong performance across its core segments.
According to SM Prime President Jeffrey C. Lim, the group’s success was largely anchored on its expanding mall network and the steady resurgence of consumer activity. “Our malls remain strong anchors for growth,” Lim said. “We’re seeing consistent demand through regional expansion, upgrades of flagship properties, and the introduction of more experiential retail and dining concepts.”
From January to September 2025, SM Prime’s total revenues rose 4% to ₱103.4 billion, driven mainly by its mall and convention center businesses. Malls contributed the lion’s share at 59% or ₱61 billion—up 7% from last year—boosted by increased leasable space and a stronger tenant mix.
The residential segment, which includes both SMDC’s core and leisure developments, accounted for over 31% of revenues at ₱32.6 billion, slightly lower than last year’s ₱33.1 billion due to slower revenue recognition from mid-market projects. Meanwhile, Hotels and Convention Centers achieved the fastest growth at 9%, reaching ₱6 billion, fueled by a rise in Meetings, Incentives, Conferences, and Exhibitions (MICE) bookings. Offices and Warehouses remained stable at ₱4 billion, reflecting temporary tenant relocations during ongoing renovations.
Lim acknowledged that some segments were affected by broader economic factors but noted that “recovery initiatives are underway to sustain momentum across our portfolios.”
SM Prime’s capital expenditures reached ₱59.3 billion, up 11% year-on-year, largely allocated to ongoing mall and residential developments, as well as new estate and hospitality projects. The company maintained a strong balance sheet, with a net debt-to-equity ratio of 46:54, an interest coverage ratio of 7.1x, and total assets worth ₱1.08 trillion, 60% of which were investment properties. Cash and cash equivalents stood at ₱33.2 billion, reflecting SM Prime’s steady financial health and capacity for continued expansion.
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