SM Prime Holdings Inc. is cautiously optimistic about the prospects for the real estate sector in 2026 but plans to maintain a P100 billion capital spending budget.
“We are cautiously optimistic for next year,” SMPH president and chief executive Jeffrey Lim said in a recent interview.
“We will probably maintain the capex that we have this year. Our guidance is P100 billion.”
Lim said the company hopes the government will increase spending next year to boost the domestic economy.
The company’s nine-month profit reached P37.2 billion, up 10 percent from P33.9 billion a year earlier, driven by 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, which accounted for 59 percent of consolidated revenues, increased 7 percent to P61 billion from P57.3 billion with the addition of leasable space and tenants.
SMPH said it expects its mall and hotel businesses to sustain growth momentum in the fourth quarter, although not at the same pace as the first half due to reported slower domestic economic growth.
Lim previously said 2025 had been a challenging year due to a series of calamities and broader uncertainty, which weighed 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 due to slower revenue recognition from mid-segment developments.
Lim said the company hopes that easing interest rates will help boost residential sales.
SMPH has programmed a P100 billion capital spending for 2025, primarily to finance the construction of new malls and residential projects.
