SM Prime Holdings (SMPH) Q4 2024 earnings summary

Executive summary

• Consolidated net income rose 14% year-over-year to PHP45.63 billion in 2024, with consolidated revenues up 10% to PHP140.39 billion and EBITDA up 11% to PHP82.17 billion.

• Malls contributed 55% of revenues and 59% of net income, residences 34% of revenues and 29% of net income, with hotels/convention centers and offices/warehouses also posting strong growth.

• Total assets surpassed PHP1 trillion, increasing 8% to PHP1,019.43 billion, while equity attributable to the parent rose 9% to PHP433.09 billion.

• Fourth quarter 2024 saw revenues grow 14% and net income accelerate 19% year-over-year.

Financial highlights

• FY2024 consolidated net income: PHP45.63bn (+14% YoY); revenue: PHP140.39bn (+10% YoY); operating income: PHP68.04bn (+11% YoY); EBITDA: PHP82.17bn (+11% YoY).

• Rent revenues grew 9% to PHP78.67bn, real estate sales increased 9% to PHP45.90bn, and other revenues rose 13% to PHP15.81bn.

• Costs and expenses increased 8% to PHP72.35bn, with gross profit margin on real estate at 58%.

• Interest-bearing debt rose 6% to PHP389.92bn, mainly due to net availments for integrated property developments and FX translation.

• Net income margin improved to 33% (from 31% in 2023); return on equity increased to 11.0%.

Outlook and guidance

• FY2025 CAPEX projected at PHP100bn, up from PHP89bn in 2024, funded by internal funds and external borrowings.

• Expansion includes new malls in Caloocan and Cebu in 2024, with three new malls and further openings planned for 2025.

• Residential launches to focus on regional areas and premium segment; hotel and convention center portfolio to add eight hotels and two convention centers by 2028.

• Landbank of over 2,363 hectares supports growth for the next 5–7 years.