SM Prime Holdings Inc., a leading integrated property developer in Southeast Asia, reported a record consolidated net income of ₱45.6 billion last year, a 14 percent increase from the ₱40 billion earned in 2023.

In a disclosure to the Philippine Stock Exchange, the company said its double-digit profit improvement was driven by higher contributions from all its business segments.

Consolidated revenues rose 10 percent to a record ₱140.4 billion in 2024 from ₱128.1 billion the previous year, due to higher rental income, real estate sales, and revenues from services and experiential offerings.

Malls accounted for 55 percent of revenues, followed by residences at 34 percent, hotels and convention centers at six percent, and offices and warehouses at five percent.

“The results we achieved in 2024 provide a solid foundation for future growth. We have several key projects in development that we expect will benefit from this positive momentum,” said SM Prime President Jeffrey C. Lim.

SM Prime capped off 2024 with impressive results, delivering its highest-ever fourth-quarter revenues and net income. Consolidated revenues grew 14 percent year-on-year from ₱35.5 billion to ₱40.6 billion, while net income accelerated 19 percent from ₱9.9 billion to ₱11.8 billion.

Strong holiday spending, the opening of two new malls, increased real estate sales, and blockbuster film releases contributed to the outstanding results.

Sy-led SM Prime is allotting up to ₱33 billion for capital expenditures this year to continue expanding its recurring income portfolio.

The company said the additional investment in its commercial property businesses is driven by expectations of a sustained recovery in consumer demand and the Philippine government's forecast of over six percent growth.

"We expect moderating inflation, easing interest rates and election-related spending to fuel our growth in 2025. Our malls should do well and our office, hotel and convention centers could provide additional upside," said Lim, highlighting the company's strong outlook.

He noted that election-related expenditures, a cyclical driver of economic expansion in the Philippines, are anticipated to stimulate aggregate demand and spending in various sectors, particularly retail.

SM Prime’s extensive network of 87 shopping malls is strategically positioned to capture this surge, bolstered by strong consumer confidence and increased foot traffic.

The company has earmarked approximately ₱21 billion for the expansion of its malls' gross floor area (GFA) to 8.08 million square meters by year-end. New developments will add 205,400 square meters of GFA, while 124,488 square meters of existing mall space will be redeveloped.

Recognizing the potential of Philippine tourism, SM Prime said it will invest around ₱6 billion in its hospitality and MICE businesses to build two convention facilities, renovate hotel rooms, and add new food and beverage facilities in existing hotels.

Meanwhile, driven by robust demand and gains in lease take-up of existing inventory, SM Offices is investing ₱6 billion to develop new office towers and workspaces.

This includes Six E-Com Center, a two-tower, Grade A office complex within the Mall of Asia Complex, designed to cater to technology-driven industries and business process outsourcing (BPO) firms.