SM Prime Holdings, Inc., one of the biggest mall and property developers in the Philippines, announced on August 10, 2026, that it earned P24.5 billion in net income during the first six months of 2026. This amount stayed about the same compared to what they made during the same period last year.
Understanding the Numbers: Revenue vs. Expenses
Think of it this way: if you have a lemonade stand, your revenue is all the money people pay you for lemonade. Your expenses are what you spend on lemons, sugar, and cups. What’s left over is your profit or net income.
SM Prime’s total revenue (money coming in) grew by 5 percent to P71.7 billion, up from P68.0 billion the previous year. However, their costs and expenses also went up by nearly 6 percent to P35.6 billion from P33.6 billion. This happened because they had to pay more for things like depreciation (when buildings and equipment get older and lose value), overhead costs (regular business expenses), and construction expenses.
Because their expenses grew slightly faster than their revenue, their net income stayed flat instead of growing.
Where Does SM Prime Make Its Money?
According to the press release, SM Prime makes money from several different businesses:
- Rental income (61%) – This is the biggest part! They rent out spaces in malls to stores, office buildings to companies, hotels, and convention centers for events
- Real estate sales (27%) – They sell residential properties like condominiums and houses
- Other businesses (12%) – This includes movie theaters, restaurants, amusement facilities, and other entertainment offerings
How Each Business Performed
Malls (biggest winner): Mall revenues grew 8 percent to P41.8 billion from P38.6 billion. According to SM Prime President Jeffrey C. Lim, this happened because more stores rented spaces (higher occupancy), those stores sold more products (stronger tenant sales), and SM Prime managed their operations better.
Residential properties: Revenue slightly decreased by 1 percent to P20.6 billion from P20.9 billion. This happened because they recognized less revenue from houses and condos they sold in previous years.
Hotels and convention centers: This segment did well, growing 8 percent to P4.4 billion from P4.1 billion. More people booked hotel rooms, and they were able to charge higher prices per night.
Offices and warehouses: Revenue increased 9 percent to P5.0 billion from P4.6 billion because more companies rented their office and warehouse spaces.
Recent Developments
The company opened SM City Zamboanga on March 20, 2026, which now serves as an important shopping and community hub in Mindanao, according to the press release.
Second Quarter Performance
Looking specifically at just the second quarter (April to June 2026), SM Prime’s net income rose slightly by 1 percent to nearly P12.9 billion from P12.8 billion. Total revenues for this period increased 9 percent to P38.4 billion, while costs also increased by nearly 9 percent to P19.0 billion, mainly because of higher construction costs.
Financial Position and Spending
As of June 2026, SM Prime’s total assets (everything the company owns) stood at P1.1 trillion. The company actually spent less on capital expenditures (money used to build new malls, buildings, and facilities) during the first half of 2026 – down 18 percent to P30.7 billion compared to P37.3 billion during the same period in 2025.
About SM Prime Holdings, Inc.
SM Prime (stock code: SMPH) is listed on the Philippine Stock Exchange. As of their latest filing, the company has 28,619,085,094 common shares outstanding and P127,896,480,000 in retail bonds. The company operates shopping malls, residential developments, office buildings, hotels, and convention centers across the Philippines and in China.
The company is headquartered at 7/F MOA Square, Seashell Lane cor. Coral Way, Mall of Asia Complex, in Pasay City.
Source Note:This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.
