MANILA — SM Prime Holdings reported a marginal increase in its net income for the first quarter of 2026, supported by stronger earnings from its mall operations.

In a disclosure to the Philippine Stock Exchange on Tuesday, the property developer said its net income reached PHP11.66 billion, slightly higher than the PHP11.65 billion recorded in the same period last year.

Total revenues grew by 2 percent to PHP33.3 billion from PHP32.8 billion year-on-year.

Rental income rose 8 percent to PHP21.6 billion from PHP20 billion, driven by improved occupancy rates in malls and office spaces. Other revenues also increased by 11 percent to PHP3.9 billion from PHP3.5 billion, attributed to higher ticket sales, food and beverage income, and expanded experiential offerings.

However, the company’s real estate segment posted a decline, with revenues falling 16 percent to PHP7.8 billion from PHP9.2 billion.

Total costs and expenses climbed 3 percent to PHP16.6 billion from PHP16.1 billion, due mainly to higher depreciation and amortization, along with increased fixed overhead costs.

During a briefing in Pasay City, SM Prime President Jeffrey Lim said the company is continuing to depend on recurring income sources to maintain its performance this year.

He noted that while the residential segment weighed on first-quarter results, the malls business remained stable.

“Hopefully the second, third and fourth quarter for the year, malls will be able to continue to deliver the recurring business because on the residential side, we expect that it will be a bit weak even in the next two to three quarters,” Lim said.

The company earlier announced a capital expenditure program of about PHP100 billion for 2026.

Lim said the spending plan is still being reviewed, with some projects undergoing reassessment and possible deferment.

“There are certain locations that we decided probably we should not pursue yet and move it to next year, as well as those for redevelopment. So all of these are fluid up to now. We continue to review because it’s very difficult to really project,” he said.