SM Prime 1Q 2025 Earnings Up 11% to P11.7B; Declares All-Time High Dividends of P13.9B

​SM Prime Holdings, Inc, one of Southeast Asia’s largest integrated property developers, posted a net income of P11.9 billion in the first quarter of 2025, up 11% from P10.7 billion in the same period last year. Attributable net income to equity holders likewise increased 11%, rising from P10.5 billion to P11.7 billion. The double-digit expansion was driven by steady revenue growth, margin improvement and disciplined cost management.

Total revenue rose 7% year-on-year from P30.7 billion to P32.8 billion due to higher rental income, revenue recognition from real estate sales and other revenues. EBITDA grew 12% from P18.1 billion to P20.2 billion, while operating income expanded 13% from P14.7 billion to P16.7 billion.

“Our portfolio is off to a strong and promising start this year,” said SM Prime President Jeffrey C. Lim. “Malls, offices, hotels and convention venues, and even residences, posted gains in the first quarter. This speaks to both the resilience of domestic demand and the strength of our integrated development strategy.”

Malls remained the largest contributor to overall profitability, accounting for 69% of earnings. The segment delivered P8.1 billion, up 13% from P7.2 billion a year earlier, because of increased foot traffic, high occupancy and growing interest in experiential offerings.

Residential earnings rose 4% to P2.1 billion from P2.0 billion, accounting for 18% of SM Prime’s net income for the quarter. The upturn was supported by higher revenue recognition from completed projects and prior-year sales.

The office and warehouse segment contributed 10% to total net income, with earnings rising 15% to P1.2 billion from P1.0 billion last year. Stronger occupancy and prudent cost management contributed to the improved performance.

Hotels and convention centers contributed 3% of total net income, posting a 17% increase to P362 million from P309 million last year, owing to strong room bookings and a robust calendar of MICE events.

As of March 2025, SM Prime’s total assets stood at P1.05 trillion, a 3% increase from year-end 2024. Capital expenditure during the quarter was largely unchanged year-on-year at P19.3 billion, with the majority allocated to development.

“While external uncertainties persist, our focus remains on disciplined execution and staying the course,” Lim said. “We have a solid foundation, and we are confident in our capacity to generate long-term, sustainable value for our shareholders.”

Reinforcing its commitment to shareholder returns, the Board of Directors meeting held on April 29, 2025, approved the declaration of a regular cash dividend amounting to 25%, plus an additional 5% special dividend, of SM Prime’s 2024 net income amounting to P0.48 per share.

The cash dividends declared totals to approximately P13.86 billion. Dividends will be payable on May 28, 2025 to shareholders of record as of May 14, 2025.

Outlook

While the recently announced US tariffs introduce external risks, the Philippines’ predominantly domestic-driven economy and limited direct exposure are expected to help cushion the impact on our company. We believe strong consumption and favorable macroeconomic tailwinds will continue to support the strength and growth potential of our portfolio.