SM Prime posts flat profit as property sales slow

Malls and rentals lifted earnings, helping offset a 16% drop in real estate sales.

SM Prime kept earnings steady in the first quarter, with only a slight lift despite mixed performance across its businesses.

The company reported a 0.08% increase in net income to ₱11.66 billion, while revenues rose 2% to ₱33.3 billion. The modest growth shows how its core businesses are holding up, even as some segments slow.

The rental shield

Recurring income carried the quarter. Rental revenues grew 8% to ₱21.6 billion, with malls alone contributing ₱20.4 billion as occupancy stayed high and foot traffic remained consistent. Hotels and convention centers also improved, helped by ongoing demand for events and travel.

Strategic recalibration

Real estate told a different story. Sales fell 16% to ₱7.8 billion, pulled down by fewer recognized bookings and cancellations. The drop points to a softer appetite for property, with buyers taking more time before committing to major purchases like homes.

Overall, SM Prime is leaning on its established network of malls, offices, and lifestyle spaces to keep income steady, even as its residential business eases. The company said it is aiming for more measured growth this year, focusing on dependable revenue streams while navigating a more cautious spending environment.