Driven by stronger commercial property revenues and disciplined cost management, Sy-led property developer SM Prime Holdings, Inc. (SM Prime) saw its net income rise 7 percent to P48.8 billion in 2025, up from P45.6 billion a year earlier.

In a stock exchange report on Monday, the company reported that its consolidated revenues edged higher to P141.1 billion from P140.4 billion.

The mall segment led with P85.1 billion, accounting for 60 percent of total revenues, followed by residential at P42.5 billion for 30 percent, hotels and convention centers at P8.5 billion for 6 percent, and offices and warehouses at P5.4 billion for 4 percent.

Revenue from commercial properties, including rental establishments, grew more than 6 percent from P92.6 billion to P98.6 billion.

“Operational efficiency played a critical role in our performance in 2025,” said SM Prime President Jeffrey C. Lim. “It enabled us to protect margins and translate modest revenue growth into a solid bottom line.”

Total costs and expenses declined 4 percent to P69.4 billion from P72.4 billion due to lower operating expenses, film rentals, insurance, and other costs.

“2026 will bring its own set of challenges, but with disciplined execution and sharper customer focus, we expect to sustain our growth momentum,” Lim added.

In the fourth quarter alone, net income held steady at P11.6 billion as lower real estate revenues were offset by reduced costs. Topline fell 7 percent to P37.7 billion, while costs and expenses dropped nearly 12 percent to P17.9 billion.

Last year, the company’s capital expenditures slightly rose to P81.9 billion from P81.3 billion, with most funds allocated to mall, residential, and estate projects, and the remainder directed to office, hotel, and convention center developments.

SM Prime ended the year with a net debt-to-equity ratio of 46:54 and an interest coverage ratio of 6.61x.

Total assets rose 7 percent to P1.1 trillion, with investment properties accounting for 61 percent, while cash and cash equivalents stood at P27.6 billion.