SY-LED property developer SM Prime Holdings, Inc. posted a first-quarter (Q1) net income of P11.66 billion in 2026, up slightly from P11.65 billion a year earlier, as revenue and costs both rose.
“Recurring income will remain central to our performance in 2026. We are prioritizing occupancy, customer experience and cost discipline to navigate the challenging operating environment,” SM Prime President Jeffrey C. Lim said in a statement on Tuesday.
Consolidated revenues rose 2% to P33.3 billion from P32.8 billion, supported by stronger rental income and other revenue streams, which helped cushion a decline in real estate sales.
Malls remained the company’s largest revenue contributor, accounting for 61% of total revenues at P20.4 billion, up 8% from a year earlier.
The residential segment generated P8.3 billion, or 25% of total revenues, declining 14% year on year despite some support from leisure residential sales.
Hotels and convention centers posted P2.2 billion in revenue, up 8%, while the office segment brought in P2.5 billion, a 10% increase, both on improved occupancy and bookings.
Rental income increased 8% to P21.6 billion, driven by improved occupancy in malls and offices. Other revenues climbed 11% to P3.9 billion, attributed to higher ticket sales, food and beverage receipts, and demand for experiential offerings.
Real estate sales fell 16% to P7.8 billion, reflecting slower revenue recognition from prior-year transactions and the impact of cancellations.
Costs and expenses grew 3% to P16.6 billion, mainly due to higher depreciation and amortization, along with fixed overhead.
As of March 2026, SM Prime reported total assets of P1.1 trillion. Capital expenditures for the quarter reached P15.5 billion, down 9% from P17.1 billion a year earlier.
The company said it will tighten capital spending and deepen coordination with tenants and partners as it responds to the economic fallout from the ongoing Middle East conflict.
It noted that the crisis has already pushed inflation and interest rates higher in the Philippines, with elevated levels expected to persist through 2027.
“Given these conditions, we expect more measured growth for our company in 2026. Our confidence is grounded in our recurring income streams, strong balance sheet, broader customer base, and integrated ecosystem,” Mr. Lim said during the company’s annual stockholders’ meeting on Tuesday.
“Together, this gives us stability through uncertainty and helps sustain performance,” he added.
At the local bourse on Tuesday, SM Prime shares fell 1.02% to P19.40 apiece. — Alexandria Grace C. Magno
