SM Prime Holdings (SMPH) Q3 2025 earnings summary

Executive summary

• Net income for the first nine months of 2025 rose 10% year-over-year to P37.24B, driven by higher rental revenues, strong mall performance, and disciplined cost management.

• Revenue for the same period increased 4% to P103.4B, with operating income up 9% to P51.9B and EBITDA up 8% to P62.76B.

• Growth was supported by stable real estate sales and higher margins, despite softer residential segment results.

• Capital expenditure increased 28% year-over-year, focused on mall and coastal land investments.

Financial highlights

• Rental revenues climbed 7% to P60.99B, mainly from malls and offices.

• 3Q 2025 revenues rose 1% year-over-year to P35.4B; net income increased 8% to P12.8B.

• Costs and expenses declined 1% for 9M 2025, amplifying the impact of revenue growth.

• EBITDA margin improved to 61% for the nine-month period.

• Net income margin improved to 36% from 33% in the prior year.

Outlook and guidance

• Optimism driven by resilient GDP growth, muted inflation, and strong remittances.

• Expectation of more BSP rate cuts through 2026 and higher regional growth.

• Hotels and convention centers to benefit from local travel and easing visa restrictions.

• Continued expansion with new mall openings, including SM City Laoag and SM City La Union in 2025.

• Ongoing residential launches and sustained capital investments in malls and integrated developments.