SM Prime's first-quarter income rises 11% to P11.7 billion

SM Prime Holdings Inc. announced that its attributable net income rose 11% to P11.7 billion in the first quarter of 2025. This compares with P10.5 billion in the same period last year, driven by strong revenues.

Total revenues increased by 7% year-on-year to P32.8 billion from P30.7 billion, primarily due to higher rental income from its malls.

"While the recently announced U.S. tariffs introduce external risks, the Philippines' predominantly domestic-driven economy and limited direct exposure are expected to help cushion the impact on our company," SMPH president and chief executive Jeffrey Lim said in a statement.

"We believe strong consumption and favorable macroeconomic tailwinds will continue to support the strength and growth potential of our portfolio," he added.

Malls remained the largest contributor to overall profitability, accounting for 69% of earnings. The segment recorded revenues of P8.1 billion in the first three months of the year, a 13% increase from P7.2 billion a year earlier, boosted by increased foot traffic, high occupancy rates, and growing interest in experiential offerings.

Residential sales climbed 4% to P2.1 billion from P2.0 billion, contributing 18% to SM Prime's net income for the quarter.

SMPH chief finance officer John Nai Peng Ong said the company did not launch any new residential projects in the first quarter, focusing instead on selling existing inventory.

First-quarter reservation sales declined to P11.6 billion from P20 billion in the same period last year.

The office and warehouse segment contributed 10% to total net income, with earnings rising 15% to P1.2 billion from P1.0 billion last year.

Hotels and convention centers accounted for 3% of total net income, posting a 17% increase to P362 million from P309 million last year, driven by strong room bookings and a robust calendar of MICE (Meetings, Incentives, Conferences, and Exhibitions) events.

SM Prime's total assets stood at P1.05 trillion as of March 2025, a 3% increase from the end of 2024.