SM Prime Holdings Inc. (SM Prime), one of Southeast Asia’s largest property developers, is reinforcing its leadership in Philippine real estate through a strategy anchored on scale, innovation and geographic reach.
SM Prime outlined a three-pronged roadmap for long-term growth during its 2025 Annual Stockholders’ Meeting on April 29. The approach centers on organic expansion, regional development and bold diversification.
“Our approach is deliberate and forward-looking. Every project is meant to improve how Filipinos live, work and connect,” said SM Prime President Jeffrey C. Lim, underscoring the company’s focus on sustainable and people-centered development.
In the near term, over 316,000 square meters of new gross floor area will be added across SM Prime’s mall portfolio, alongside the redevelopment of more than 309,000 square meters of existing mall space. These initiatives are designed to boost asset efficiency, enhance customer experience and strengthen earnings from mature sites.
SM Prime is also scaling up its presence in provincial growth centers. New malls in Laoag, La Union, and Zamboanga are scheduled to open by 2025, expanding SM Prime’s reach into underserved markets and contributing to regional economic development.
At the same time, diversification into high-value segments is underway. Lim said he expects integrated property developments and premium residential projects to drive growth over the next five years.
During the April 29 stockholders’ meeting, SM Prime reported that it is moving into upscale residential projects and master-planned urban estates, integrating sustainability, digital infrastructure and resilience as core design principles.
To strengthen its entry into the premium primary residential segment, SM Prime signaled its openness to partnerships while emphasizing its internal capability to deliver projects independently.
“For certain developments that we have already planned and have strong confidence in, we will pursue them on our own. However, if the project requires additional expertise or broader organizational support, we are more than willing to bring in partners,” said Jose Juan Z. Jugo, Executive Vice President for the premium residential segment.
Metro Manila will be the launch market for the yet-to-be-named premium brand, but Jugo said that expansion to other areas will depend on demand. Prices will start at P15 million, with upper ranges to be set by market conditions.
Supported by a P100 billion capital expenditure plan for 2025, SM Prime is positioned to continue delivering shareholder value while future-proofing its property portfolio.
As of March 2025, SM Prime’s total assets stood at P1.05 trillion, a 3% increase from year-end 2024. Capital expenditure during the quarter was largely unchanged at P19.3 billion, with majority spent on development activities.
In the first quarter of 2025, SM Prime reported a net income of P11.9 billion in the first quarter of 2025, up 11% from P10.7 billion in the same period last year. Attributable net income to equity holders likewise increased 11%, rising from P10.5 billion to P11.7 billion. The company’s strong performance was driven by steady revenue growth, margin expansion and disciplined cost management.
The residential segment, SM Prime’s second biggest earnings contributor, continued to show steady growth during the period, rising 4% to P2.1 billion. “Our first quarter numbers are aligned with our full-year outlook, and we are projecting a 5 to 10 percent increase in sales reservations compared to last year,” said Grace Sta. Ana, Executive Vice President of SM Development Corporation (SMDC).
SM Prime’s residential segment reported reservation sales of approximately P11.6 billion in the first quarter of 2025, compared to P27.1 billion during the same period last year.
