SM Prime Holdings Inc. (SM Prime), one of the largest integrated property developers in Southeast Asia, maintained its first-half 2026 earnings at ₱24.5 billion, a record set in the same period last year, as El Niño and high fuel costs drove consumers to its malls.

In a media briefing on Monday, Aug. 10, SM Prime President Jeffrey C. Lim said total revenues grew five percent year-on-year to ₱71.7 billion from ₱68 billion, with rental income from malls, offices, hospitality, and meetings, incentives, conferences, and exhibitions (MICE) accounting for 61 percent.

Real estate sales contributed 27 percent, while cinema ticket sales, food and beverage (F&B), amusement, and related offerings generated the remaining 12 percent.

Costs and expenses during the same period increased nearly six percent to ₱35.6 billion from ₱33.6 billion due to higher depreciation and amortization charges, fixed overhead costs, and construction expenses.

“Our focus on tenant relationships, customer experience, and cost management supported our performance. Despite challenging market conditions, commercial demand remained resilient across our portfolio,” said Lim.

Mall revenues grew eight percent to ₱41.8 billion from ₱38.6 billion on the combined effect of higher occupancy, stronger tenant sales, and improved operational efficiency.

“The convenience and the location of our malls, paired with strong tenant mix, promotions, customer experience played a big role. The high temperatures drew people to our air-conditioned spaces and this increased dwell time and spending across dining and entertainment,” said SM Prime Chief Finance Officer (CFO) John Nai Peng C. Ong.

He also explained, “volatile fuel prices and the softer peso kept more leisure spending domestic. Rather than taking trips abroad, families opted for local staycations.”

Residential revenues, covering core, leisure, and premium offerings, slipped one percent to ₱20.6 billion from ₱20.9 billion on lower revenue recognition from prior-year sales.

Revenues from hotels and convention centers expanded eight percent to ₱4.4 billion from ₱4.1 billion owing to higher bookings and average daily room rates.

Office and warehouse revenues rose nine percent to ₱5 billion from ₱4.6 billion, driven by higher space take-up.

Second-quarter consolidated net income rose one percent to nearly ₱12.9 billion from ₱12.8 billion, as costs grew in line with revenues.

Total revenues from April to June increased nine percent to ₱38.4 billion from ₱35.3 billion. Meanwhile, costs and expenses rose nearly nine percent to ₱19 billion from ₱17.5 billion, mainly due to higher construction costs.