(November 9, 2026, Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime) reported consolidated net income of P35.4 billion in the first nine months of the year, down 5 percent from P37.2 billion a year earlier, as weaker real estate sales offset gains in rental income and other revenues.
Rent income rose 8 percent to P66 billion from P61 billion while real estate sales declined 23 percent to P24 billion from P31.2 billion. Other revenues, comprising leisure, entertainment, hotel dining, advertising and sponsorship income, rose 17 percent to P13.1 billion from P11.2 billion.
“Higher borrowing costs, elevated inflation and cautious consumer spending continued to weigh on residential demand. However, growth in our commercial and hospitality businesses helped keep revenues steady,” said SM Prime President Jeffrey C. Lim. “Our focus on managing costs helped ease the pressure on earnings.”
Consolidated revenues from January to September were broadly unchanged at P103.1 billion, compared with P103.4 billion a year earlier. Meanwhile, cost discipline kept operating expenses and cost of real estate sold stable at P51.3 billion from P51.5 billion.
Malls accounted for 62 percent of total revenues, rising 10 percent to P63.7 billion from P58.2 billion, buoyed by additional leasable space, higher tenant occupancy and strong demand for dining and experiential offerings.
The residential segment, comprising core, leisure and premium projects, accounted for 25 percent of total revenues. Segment revenues declined 21 percent to P25.6 billion from P32.6 billion, reflecting slower revenue recognition and buyer backouts.
Revenues from offices and warehouses, which accounted for 8 percent of the total, rose 10 percent to P7.8 billion from P7.0 billion, supported by higher occupancy rates.
The hospitality and MICE segment contributed 6 percent of consolidated revenues, growing 7 percent to P6.4 billion from P6.0 billion, as increased hotel bookings, higher average room rates and stronger demand for meetings, conventions and events lifted revenues.
For the third quarter alone, SM Prime recorded consolidated net income of P10.9 billion, 15 percent lower than P12.8 billion a year earlier. Consolidated revenues decreased 11 percent to P31.4 billion from P35.4 billion. Malls contributed P21.9 billion in revenues, up 12 percent year-on-year, while residences generated P5.0 billion, offices and warehouses P2.7 billion, and hotels and convention centers P2.0 billion.
Capital expenditures stood at P44.4 billion from January to September, a 25-percent decline from P59.3 billion a year earlier. The bulk of the spending went to ongoing mall and residential developments, with the remainder spent on commercial, integrated, hotel and convention center projects.
SM Prime ended September with a net debt-to-equity ratio of 0.84x and an interest coverage ratio of 7.3x. Total assets amounted to P1.1 trillion, with investment properties accounting for 62 percent of the total. Cash and cash equivalents stood at P27.9 billion.
###
For further information, please contact:
John Nai Peng C. Ong
Chief Finance Officer
SM Prime Holdings, Inc.
E-mail: [email protected]
Tel. no.: 8831.1000 loc. 7886
Forward-looking Statement
This document may contain forward-looking statements and forward-looking information that are subject to significant risks and uncertainties including, without limitation, statements relating to known and unknown risks; uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from expected future results; performance or achievements expressed or implied by forward-looking statements; our overall future business, financial condition, and results of operations, including, but not limited to financial position or cash flow; our goals for or estimates of future operational performance or results; and changes in the regulatory environment including, but not limited to, policies, decisions, and determinations of governmental or regulatory authorities. Although: (1) SM Prime Holdings, Inc. has extensive experience; and (2) the forward-looking statements may be reasonable, nothing herein should be relied upon as a commitment from SM Prime Holdings, Inc. as we cannot guarantee future events, performance or events due to various risks and uncertainties.