Property developer SM Prime Holdings Inc. (SMPH) reported a attributable net income of P11.7 billion in the first quarter of 2025, up 11 percent from P10.5 billion in the same period last year on the back of strong revenues.
Total revenues rose 7 percent year-on-year to P32.8 billion from P30.7 billion, led by higher rental income from malls.
“While the recently announced US 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.
“We believe strong consumption and favorable macroeconomic tailwinds will continue to support the strength and growth potential of our portfolio,” he said.
Malls remained the largest contributor to overall profitability, accounting for 69 percent of earnings. The segment recorded revenues of P8.1 billion in the first three months of the year, up 13 percent from P7.2 billion a year earlier, because of increased foot traffic, high occupancy and growing interest in experiential offerings.
Residential sales climbed 4 percent to P2. 1 billion from P2.0 billion, accounting for 18 percent of 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 of the year as the company focused 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 percent to total net income, with earnings rising 15 percent to P1.2 billion from P1.0 billion last year.
Hotels and convention centers contributed 3 percent of total net income, posting a 17-percent increase to P362 million from P309 million last year, owing to strong room bookings and a robust calendar of MICE events.
SM Prime’s total assets stood at P1.05 trillion as of March 2025, a 3-percent increase from year-end 2024.
Capital expenditure in the quarter was largely unchanged year-on-year at P19.3 billion, with the majority allocated to development.
Meanwhile, the board of directors approved the declaration of a regular cash dividend amounting to 25 percent, plus an additional 5-percent special dividend of SM Prime’s 2024 net income amounting to P0.48 per share.
The cash dividends declared totals to about P13.86 billion. They are payable on May 28, 2025 to shareholders of record as of May 14, 2025.