Property developer SM Prime Holdings, Inc. (SMPH) expects its full-year 2025 net income to match or even surpass the record P45 billion it booked in 2024, despite anticipating slower domestic economic growth in the second half of the year.
The company’s nine-month profit reached P37.2 billion, up 10 percent from P33.9 billion a year earlier on stronger contributions from the mall and convention center segments. Net income in the third quarter rose 8 percent to P12.8 billion from P11.8 billion.
Revenues from January to September went up 4 percent to P103.4 billion from P99.8 billion. Mall revenues, accounting for 59 percent of consolidated revenues, increased 7 percent to P61.0 billion from P57.3 billion, with the addition of leasable space and tenants.
SMPH said it expects its malls and hotel businesses to sustain growth momentum in the fourth quarter, although it will not be at the same pace as the first half due to the reported slower domestic economic growth.
“So overall, I think we should still be able to grow our Q4 numbers, although it might not be the same level as what we have seen in the past,” said SMPH president and chief executive Jeffrey Lim in a virtual news briefing.
Lim said 2025 has been a challenging year due to a series of calamities and broader uncertainty, which weighed down on both sentiment and confidence.
The residential segment, which contributed over 31 percent of total revenues, saw a 2-percent dip to P32.6 billion from P33.1 billion on slower revenue recognition from mid-segment developments.
Lim said the company hopes that easing interest rates will help boost residential sales.
Hotels and convention centers registered the strongest growth at 9 percent, rising to P6 billion from P5.5 billion. Revenues from offices and warehouses remained steady at P4 billion, representing almost 4 percent of the total.
“The residential and office segments were tempered by macroeconomic conditions, but recovery initiatives are underway,” Lim said.
Capital expenditures reached P59.3 billion in the first nine months, growing 11 percent from the same period last year to support mall and residential projects.
