SM Prime’s nine-month profit falls 5% as property sales weaken

Philippine property developer SM Prime Holdings Inc. reported net income of ₱35.4 billion for January–September 2026, down five per cent from ₱37.2 billion a year earlier. Lower property sales outweighed increases in rental and other income, the company said.

Revenue for the period was nearly flat at ₱103.1 billion, compared with ₱103.4 billion previously. Real estate sales dropped 23 per cent to ₱24 billion, while rental income rose eight per cent to ₱66 billion. Other revenue increased 17 per cent to ₱13.1 billion.

Third-quarter consolidated net income was ₱10.9 billion, a decline of 15 per cent from ₱12.8 billion. President Jeffrey Lim said commercial and hospitality growth supported revenue, while cost management limited the pressure on earnings.

Mall revenue rose 10 per cent to ₱63.7 billion, supported by more leasable space, improved occupancy and demand for dining and experiences. Residential revenue fell 21 per cent to ₱25.6 billion because of slower revenue recognition and buyers backing out. Offices and warehouses generated ₱7.8 billion, up 10 per cent, while hospitality and MICE revenue increased seven per cent to ₱6.4 billion.

For 2027, Lim said SM Prime would be more selective about project priorities and timing rather than suspend expansion. Mall investment will concentrate on finishing developments and redevelopments already under way, although market conditions could affect the timing of pipeline projects. Hotel and convention centre projects will proceed as planned, he said.

Lim said residential launches would favour the premium market, where demand had been relatively stronger. The company will remain cautious about core-segment launches until buyer take-up and sentiment improve. It has no plans for new office launches, focusing instead on completing existing projects and raising occupancy.