SM Prime Holdings (SMPH) Q2 2025 earnings summary

Executive summary

• Net income for the first half of 2025 rose 11% year-over-year to P24.46 billion, driven by higher rental and real estate sales revenues, with record profitability and improved margins from higher rent and disciplined cost control.

• Consolidated revenues increased 5% to P68.04 billion, with strong contributions from malls, offices, and ongoing residential projects.

• EBITDA grew 10% to P41.61 billion, maintaining a 61% margin.

Financial highlights

• 2Q 2025 revenues rose 4% year-over-year to P35.3B; 1H 2025 revenues up 5% to P68.04B.

• Net income grew 11% in 1H 2025 to P24.46B.

• EBITDA margin improved by 2 percentage points to 61% in 1H.

• Capex for 1H 2025 reached P20.3B, up 5%, with increased spending on malls and coastal land development.

• Gross profit margin on real estate maintained at 58%.

Outlook and guidance

• Optimism driven by strong consumption, easing inflation, resilient GDP growth (~6%), and upbeat consumer sentiment.

• Anticipates robust demand across all segments, supported by lower interest rates and government initiatives in tourism and infrastructure.

• Continued expansion with new mall openings and ongoing integrated commercial developments.

• Planned launch of SM City La Union in 2H 2025, adding 0.1 million sqm GFA.

• Focus on capital expenditures for construction projects and land banking.