SM Prime Earnings Flat at ₱11.7-B as Recurring Income Offsets Weak Sales

SM Prime Holdings reported first-quarter net income of ₱11.66 billion, largely flat compared to ₱11.65 billion a year earlier, as rising costs offset modest revenue growth.

Malls remained the largest contributor, accounting for 61% of total revenues at ₱20.4 billion, up 8% year-on-year. (Photo: SM Supermalls)

Total revenues increased 2% year-on-year to ₱33.3 billion from ₱32.8 billion, supported by higher rental income and other revenues, which helped cushion weaker real estate sales.

“Recurring income will remain central to our performance in 2026,” said Jeffrey C. Lim.

“We are prioritizing occupancy, customer experience, and cost discipline to navigate a challenging operating environment.”

Rental income rose 8% to ₱21.6 billion from ₱20.0 billion, driven by improved mall and office occupancy. Other revenues climbed 11% to ₱3.9 billion, supported by higher ticket sales, stronger food and beverage income, and increased demand for experiential offerings.

Real estate sales declined 16% to ₱7.8 billion from ₱9.2 billion, reflecting slower revenue recognition and cancellations.

Costs and expenses grew 3% to ₱16.6 billion, mainly due to higher depreciation and amortization, as well as fixed overhead costs.

Malls remained the largest contributor, accounting for 61% of total revenues at ₱20.4 billion, up 8% year-on-year. The residential segment contributed ₱8.3 billion, or 25% of total revenues, down 14% from the previous year.

Hotels and convention centers generated ₱2.2 billion, representing 7% of total revenues, supported by higher occupancy rates and increased bookings.

The office segment contributed ₱2.5 billion, also 7% of revenues, up 10% on improved occupancy.

As of March 2026, SM Prime’s total assets stood at ₱1.1 trillion. Capital expenditures reached ₱15.5 billion during the quarter, down 9% from ₱17.1 billion a year earlier.

The board approved a regular cash dividend of ₱0.42 per share, equivalent to 25% of 2025 net income. Total dividends amount to approximately ₱12.2 billion and will be paid on May 27, 2026, to shareholders of record as of May 13.