SM Prime Holdings Inc., the integrated property developer led by the billionaire Sy family, posted a seven percent increase in full-year consolidated net income as recovery in commercial property and rigorous cost-cutting measures shielded the bottom line from a slowdown in residential sales.

The firm disclosed to the Philippine Stock Exchange that the developer’s net income for 2025 was ₱48.8 billion, up from ₱45.6 billion a year earlier.

While consolidated revenues rose marginally to ₱141.1 billion from ₱140.4 billion, the company relied heavily on its dominant mall business to sustain growth.

SM Prime’s shopping center segment accounted for 60 percent of total revenue, generating ₱85.1 billion, while the residential division contributed ₱42.5 billion, or 30 percent. The remainder was split between the company’s hotels and convention centers, which brought in ₱8.5 billion, and its office and warehouse portfolio at ₱5.4 billion.

In 2025, SM Prime’s revenue from commercial properties, primarily driven by rental income, rose six percent to ₱98.6 billion. This growth helped mitigate a broader cooling in the real estate market, where SM Prime and its peers have faced shifting buyer sentiment and interest rate pressures. 
SM Prime President Jeffrey C. Lim attributed the year’s resilience to “operational efficiency,” noting that disciplined management allowed the firm to protect its margins even as top-line growth remained modest.

Expenses were a key lever for the firm in 2025. Total costs fell four percent to ₱69.4 billion, aided by lower outlays for film rentals, insurance, and general operating overhead. This efficiency was particularly evident in the fourth quarter, when net income held steady at ₱11.6 billion despite a seven percent decline in quarterly revenue to ₱37.7 billion.

The contraction in the top line during the final three months of the year was neutralized by a nearly 12 percent drop in quarterly costs, which fell to ₱17.9 billion.

Looking ahead, the company is maintaining its aggressive expansion pace. Capital expenditures for 2025 edged up to ₱81.9 billion from ₱81.3 billion, with the lion’s share directed toward malls, residential projects, and large-scale estate developments. SM Prime ended the year with a robust balance sheet, reporting total assets of ₱1.1 trillion.

The company’s net debt-to-equity ratio stood at 46:54, with an interest coverage ratio of 6.61 times and a cash position of ₱27.6 billion. Lim expressed confidence that this financial footing would allow the developer to sustain its momentum through 2026 despite an evolving economic landscape.