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Is SM Prime on Track to Exceed Its Full-Year Target After a Strong ₱12.8B Q3?

  • bedandgoinc
  • 2025年11月15日
  • 読了時間: 3分

November 15,2025


SM Prime Holdings Inc., one of the Philippines' largest and most influential property developers, delivered a strong performance in the third quarter of 2025, posting ₱12.8 billion in net income, an 8% increase year-on-year. The growth was primarily driven by the company's expanding mall portfolio and the resurgence of the hotel and convention center (MICE) sector—two of its most resilient business segments.



Despite signs of softening economic activity, SM Prime remains confident about its prospects for the remainder of the year, raising the question: Is the developer positioned to exceed its full-year income target?


Mall Operations Continue to Anchor Growth


SM Prime President Jeffrey C. Lim reaffirmed that the company's malls remain the backbone of its performance. He highlighted the impact of:

  • Aggressive regional expansion,

  • Upgrading and modernizing key flagship malls, and

  • Expanding experiential retail and dining offerings that drive strong customer traffic.


For the first nine months of 2025:



  • Mall revenues rose 7% to ₱61 billion

  • Malls accounted for 59% of consolidated revenues

  • New leasable spaces and increased tenant occupancy contributed to steady growth


International operations also remain promising. SM Supermalls President Steven T. Tan confirmed that phase four of SM City Xiamen's redevelopment will be completed by early 2026, and SM City Xiamen Haicang has now reached 90% occupancy.



Earnings Strengthens in the First Nine Months


From January to September 2025, SM Prime recorded:

  • ₱37.2 billion in net income, up 10% from the same period last year

  • ₱103.4 billion in total revenues, a 4% increase year-on-year


These figures place SM Prime in a favorable position heading into Q4, even with a cautious economic outlook.


Residential Segment Softens but Stabilizes


The residential segment, which includes both core housing developments and leisure projects, posted ₱32.6 billion in revenues, a slight 2% decline from 2024. This dip was mainly due to slower revenue recognition from mid-market developments.


Chief Financial Officer John Nai Peng Ong noted that the company maintains a diverse portfolio of 26,000 residential units, split evenly between high-rise and mid-rise formats. Recovery initiatives are now being rolled out to help offset the slowdown and improve revenue flow moving forward.


Hotels and Convention Centers Deliver Strongest Growth


SM Prime's hotel and convention center business saw the most notable uptick, jumping 9% to ₱6 billion due to the continued rebound in meetings, incentives, conferences, and exhibitions (MICE) bookings. This segment now contributes nearly 6% to total revenues.


Meanwhile, office and warehouse revenues held steady at ₱4 billion, reflecting temporary tenant relocations amid ongoing warehouse renovations.


Capex Rises as Expansion Efforts Intensify


SM Prime allocated ₱59.3 billion in capital expenditures in the first nine months of the year—an 11% increase from 2024. The majority supported mall expansion and residential development, with the rest directed toward estates, hotels, and convention centers.



As of September 2025, the company's financial position remains healthy:

  • ₱1.08 trillion in total assets

  • 46:54 net debt-to-equity ratio

  • ₱33.2 billion in cash and cash equivalents

  • 7.1x interest coverage ratio, illustrating strong liquidity and balanced leverage


On Track for Its Full-Year Target?


SM Prime had earlier projected achieving—if not exceeding—its ₱45-billion full-year net income goal. With a strong Q3 and solid cumulative earnings, the company appears well-positioned to meet this target.


President Lim remains cautiously optimistic, noting that while economic growth has slowed, potential improvements in spending and market conditions could support a stronger finish to 2025.


Investor Sentiment Remains Measured


Despite the upbeat financial results, SM Prime's stock closed 1.45% lower at ₱20.40. Investor sentiment appears mixed as the broader economic landscape continues to influence market reactions.


Still, with malls recovering strongly, the MICE sector rebounding, and strategic expansions underway, SM Prime is firmly steering through 2025—and may well surpass its full-year earnings goal if current momentum continues.


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