SM Prime Posts P24.5B H1 Profit

SM Prime Holdings, Inc. (SM Prime) maintained a solid financial performance in the first half of 2026, reporting a net income of P24.5 billion as growth across its malls, hotels, convention centers, offices, and warehouses helped offset higher operating costs.

For the January-to-June period, consolidated revenues reached P71.7 billion, up 5 percent from P68.0 billion in the same period last year. Rental income from the company’s malls, offices, hospitality, and meetings, incentives, conventions, and exhibitions (MICE) businesses remained the biggest contributor, accounting for 61 percent of total revenues.

Real estate sales represented 27 percent, while cinema ticket sales, food and beverage, amusement, and other related businesses contributed the remaining 12 percent.

The company’s costs and expenses, however, climbed nearly 6 percent to P35.6 billion from P33.6 billion. The increase was attributed mainly to higher depreciation and amortization, fixed overhead expenses, and construction costs.

“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 SM Prime President Jeffrey C. Lim.

The mall business continued to lead growth, with revenues increasing 8 percent to P41.8 billion from P38.6 billion. The improvement was supported by higher occupancy levels, stronger tenant sales, and better operational efficiency.

SM Prime’s hotels and convention centers also delivered an 8 percent revenue increase to P4.4 billion from P4.1 billion, benefiting from stronger bookings and improved average daily room rates.

Meanwhile, office and warehouse revenues advanced 9 percent to P5.0 billion from P4.6 billion as demand for available spaces strengthened.

Residential operations posted a slight decline, with revenues from core, leisure, and premium developments slipping 1 percent to P20.6 billion from P20.9 billion. The company attributed the decrease to lower revenue recognition from sales booked in previous periods.

For the second quarter alone, SM Prime recorded consolidated net income of nearly P12.9 billion, 1 percent higher than P12.8 billion a year ago.

Revenues from April to June rose 9 percent to P38.4 billion from P35.3 billion. Costs and expenses increased at a similar pace to P19.0 billion from P17.5 billion, largely because of higher construction expenses.

SM Prime ended June 2026 with total assets of P1.1 trillion. Capital expenditures during the first six months declined 18 percent to P30.7 billion from P37.3 billion in the comparable period last year.

The results reflect continued strength in SM Prime’s commercial portfolio as the company balances expansion and operating costs amid evolving market conditions.