SM Prime eyes another record year on solid first half

MANILA, Philippines — Property giant SM Prime Holdings Inc. is aiming to surpass its record profit in 2025 as strength in its recurring businesses helps cushion continued weakness in the residential property market.

In a media briefing, SM Prime president Jeffrey Lim said the company’s malls and other recurring businesses were expected to sustain their performance in the second half of the year.

READ: SM Prime first-half profit steady at P 24.5B

Article continues after this advertisement

“If you look at the results that we have now, I think taking aside the residential development, our other businesses, especially the recurring business, I think should continue to do well in the second half,” Lim said.

“So I think the projection in terms of matching what we had last year, that’s probably our target also,” he added.

SM Prime booked a net income of P24.5 billion in the first half of 2026, steady from the same period last year.

This puts the Sy-led property giant roughly halfway toward matching its record full-year earnings of P48.8 billion in 2025.

The company is taking a more cautious stance on its residential business, with no new Metro Manila launches planned for the rest of the year as it works through existing inventory.

Article continues after this advertisement

Still, Lim said SM Prime was targeting P30 billion to P35 billion in reservation sales in the second half. That means surpassing the P25 billion recorded in the first six months.

Cris Noel Torres, executive vice president of SM Prime, said the company had an inventory of about 29,000 residential units as of end-June.

Article continues after this advertisement

Only 13 percent of these were ready-for-occupancy (RFO) units while 87 percent were ongoing developments.

The company said it would focus on accelerating the completion of these ongoing projects as RFO units tend to record faster reservation take-up.

READ: SM Prime opens up 31,000 sqm of space

Beyond residential, SM Prime is banking on its integrated developments and recurring businesses to navigate macroeconomic headwinds.

Its pipeline includes retail, hospitality and meetings, incentives, conferences and exhibitions projects that are expected to further strengthen its estates.

Among these are SM Horizon Plaza, the phased completion of SM Megamall, Park Inn by Radisson at SM City Dasmariñas, an SMX site in Pasay and Balea at Pico Terraces.

SM Prime is also completing North Towers 4 and 5 at SM North Edsa as it continues to expand its integrated developments across different property segments. INQ