2026 1Q Financial Statements

SEC Registration Number

C O M P A N Y N A M E

PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )

Form Type Department requiring the report Secondary License Type, If Applicable

Company's Email Address Company's Telephone Number Mobile Number

No. of Stockholders

Annual Meeting Month/Day

Fiscal Year Month/Day

CONTACT PERSON INFORMATION

The designated contact personMUST be an Officer of the Corporation

Name of Contact Person Email Address Telephone Number/s Mobile Number

CONTACT PERSON's ADDRESS

NOTE1: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.

2: All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation's records with the Commission and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.

SEC No. AS094-000088

File No.

(Company's Full Name)

7/F MOA Square, Seashell Lane cor. Coral Way, Mall of Asia Complex,Brgy.76Zone10,CBP1-A,1300PasayCity,MetroManila,Philippines (Company's Address)

8831-1000

(Telephone Numbers)

December31 (Fiscal Year ending) (Month and Day)

Form 17-Q for the 1st Quarter of 2026

(Form Type)

N/A

Amendment Designation

March 31, 2026

Period Ended Date

N/A

(Secondary License Type and File Number)

SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER

1. For the quarterly period ended MARCH31,2026

2. SEC Identification Number AS094-000088

3. BIR Tax Identification No. 003-058-789

4. Exact name of registrant as specified in its charter SMPRIMEHOLDINGS,INC.

5. PHILIPPINES 6. (SEC Use Only)

Province, Country or other jurisdiction of incorporation or organization

Industry Classification Code:

1. 7/FMOASquare,SeashellLanecor.CoralWay,MallofAsiaComplex,Brgy.76Zone10,CBP1-A,PasayCity,MetroManila,Philippines1300

   Address of principal office Postal Code

2. (632) 8831-1000

   Registrant's telephone number, including area code

3. NA

   Former name, former address, and former fiscal year, if changed since last report.

4. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA

   Number of Shares of Common Stock

   Title of Each Class Outstanding and Amount of Debt Outstanding

   Common shares P=1 Par Value 28,736,516,094

   Debt Securities - Retail Bonds P=137,896,480,000

5. Are any or all of these securities listed on a Stock Exchange. Yes [X] No [ ]

   If yes, state the name of such stock exchange and the classes of securities listed therein:

   Philippine Stock Exchange Common Shares

6. Check whether the registrant:

   1. has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation Code of the Philippines during the preceding 12 months (or for such shorter period that the registrant was required to file such reports);

      Yes [X] No [ ]

   2. has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

SM Prime Holdings, Inc. and Subsidiaries

Unaudited Interim Condensed Consolidated Financial Statements Balance Sheets as at March 31, 2026 (Unaudited) and

December 31, 2025 (Audited)

Statements of Income for the Three-Month Periods Ended March 31, 2026 and 2025 (Unaudited)

(Amounts in Thousands)

(Forward)

P=1,110,879,784 =P1,093,878,665

See accompanying Notes to Interim Condensed Consolidated Financial Statements.

(Amounts in Thousands, Except Per Share Data)

Three-Month Periods Ended March 31

(Amounts in Thousands)

Three-Month Periods Ended March 31

2026 2025

(Unaudited)

NET INCOME P=11,867,110 =P11,864,479

OTHER COMPREHENSIVE INCOME (LOSS)

Item that will not be reclassified to profit or loss in subsequent periods:

Unrealized gain (loss) due to changes in fair value of financial

assets at FVOCI (Note 8) (1,975,370) 905,367

Items that may be reclassified to profit or loss in subsequent periods:

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025

(Amounts in Thousands)

Equity Attributable to Equity Holders of the Parent

Net Fair Value Changes of

(Amounts in Thousands)

Three-Month Periods Ended March 31

Disposals of investment properties and property equipment

(Notes 10 and 12) (24,866) -

Unrealized foreign exchange and settlement of

1. Corporate Information

   SM Prime Holdings, Inc. (SMPH or the Parent Company) was incorporated in the Philippines and registered with the Securities and Exchange Commission on January 6, 1994. SMPH was incorporated to acquire by purchase, exchange, assignment, gift or otherwise, and to own, use, improve, subdivide, operate, enjoy, sell, assign, transfer, exchange, lease, let, develop, mortgage, pledge, traffic, deal in and hold for investment or otherwise, including but not limited to real estate and the right to receive, collect and dispose of, any and all rentals, dividends, interest and income derived therefrom; the right to vote on any proprietary or other interest on any shares of stock, and upon any bonds, debentures, or other securities; and the right to develop, conduct, operate and maintain modernized commercial shopping centers and all the businesses appurtenant thereto, such as but not limited to the conduct, operation and maintenance of shopping center spaces for rent, amusement centers, movie or cinema theatres within the compound or premises of the shopping centers, to construct, erect, manage and administer buildings such as condominium, apartments, hotels, restaurants, stores or other structures for mixed use purposes.

   SMPH's shares of stock are publicly traded in the Philippine Stock Exchange (PSE).

   The Company's ultimate parent company is SM Investments Corporation (SMIC). SMIC is a Philippine corporation whose common shares is listed with the PSE in 2005.

   The registered office and principal place of business of the Parent Company is at 7/F MOA Square, Seashell Lane cor. Coral Way, Mall of Asia Complex, Brgy. 76 Zone 10, CBP-1A, 1300 Pasay City, Metro Manila, Philippines.

2. Basis of Preparation

   The accompanying interim condensed consolidated financial statements of the Parent Company and its subsidiaries (collectively known as "the Company") have been prepared on a historical cost basis, except for financial assets at fair value through other comprehensive income (FVOCI) and derivative financial instruments which have been measured at fair value.

   The interim condensed consolidated financial statements are presented in Philippine peso, which is the Parent Company's functional and presentation currency under Philippine Financial Reporting Standards (PFRS) Accounting Standards. All values are rounded to the nearest thousand peso, except when otherwise indicated.

   The interim condensed consolidated financial statements have been prepared under the going concern assumption.

   Statement of Compliance

   The accompanying interim condensed consolidated financial statements have been prepared in accordance with Philippine Accounting Standard (PAS) 34, Interim Financial Reporting.

   The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Company's annual audited consolidated financial statements as at December 31, 2025.

   Basis of Consolidation

   The interim condensed consolidated financial statements include the accounts of the Parent Company and all of its subsidiaries. As at March 31, 2026, there were no significant changes in the composition of the Company and in the Parent Company's ownership interests in its subsidiaries.

   Material Accounting Judgments, Estimates and Assumptions

   The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these estimates and assumptions could result in outcomes that require an adjustment to the carrying amount of the affected asset or liability in the future period.

   Except as otherwise disclosed, there were no significant changes in the significant accounting judgments, estimates and assumptions used by the Company for the three-month period ended March 31, 2026.

3. Summary of Material Accounting Policy Information

   Changes in Accounting Policies and Disclosures

   The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended December 31, 2025, except for the following amendments which became effective in 2026. The adoption of these amendments did not have any material impact on the interim condensed consolidated financial statements.

   • Amendments to Illustrative Examples on PFRS 7, PFRS 18, PAS 1, PAS 8, PAS 36 and PAS 37,

     Disclosures about Uncertainties in the Financial Statements

   • Amendments to PFRS 9 and PFRS 7, Classification and Measurement of Financial Instruments

   • Amendments to PFRS 9 and PFRS 7, Contracts Referencing Nature-dependent Electricity

   • Annual Improvements to PFRS Accounting Standards-Volume 11

     • Amendments to PFRS 1, Hedge Accounting by a First-time Adopter

     • Amendments to PFRS 7, Gain or Loss on Derecognition

     • Amendments to PFRS 9, Lessee Derecognition of Lease Liabilities and Transaction Price

     • Amendments to PFRS 10, Determination of a 'De Facto Agent'

     • Amendments to PAS 7, Cost Method

       Future Changes in Accounting Policies and Disclosures

       Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the Company does not expect that the future adoption of the said pronouncements will have a significant impact on its consolidated financial statements. The Company intends to adopt the following pronouncements when they become effective.

       Effective beginning on or after January 1, 2027

   • PFRS 17, Insurance Contracts

   • PFRS 18, Presentation and Disclosure in Financial Statements, the standard replaces PAS 1, Presentation of Financial Statements, and responds to investors' demand for better information about companies' financial performance. The new requirements include:

     • Required totals, subtotals and new categories in the statement of profit or loss

     • Disclosure of management-defined performance measures

     • Guidance on aggregation and disaggregation

       The Company continues to assess the potential impact of PFRS 18 on its consolidated financial statements.

   • PFRS 19, Subsidiaries without Public Accountability

   • Amendments to PAS 21, Translation to a Hyperinflationary Presentation Currency Deferred effectivity

   • Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

4. Segment Information

   For management purposes, the Company is organized into business units based on their products and services, and has four reportable segments as follows: malls, residential, hotels and convention centers, and commercial and integrated commercial developments.

   Malls segment develops, conducts, operates and maintains the business of modern commercial shopping centers and all businesses related thereto such as the conduct, operation and maintenance of shopping center spaces for rent, amusement centers, or cinema theaters within the compound of the shopping centers.

   Residential and commercial and integrated commercial developments segments are involved in the development and transformation of major residential, commercial, entertainment and tourism districts through sustained capital investments in buildings and infrastructure.

   Hotels and convention centers segment engages in and carry on the business of hotel and convention centers and operates and maintains any and all services and facilities incident thereto.

   Management, through the Executive Committee, monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with the operating profit or loss in the interim condensed consolidated financial statements.

   The amount of segment assets and liabilities and segment profit or loss are based on measurement principles that are similar to those used in measuring the assets and liabilities and profit or loss in the interim condensed consolidated financial statements, which is in accordance with PFRS Accounting Standards.

   Inter-segment Transactions

   Inter-segment transactions are eliminated in the interim condensed consolidated financial statements.

   Business Segment Data

   March 31, 2026 (Unaudited)

   Commercial and

   Malls Residential

   Hotels and

   Convention

   Centers

   Integrated

   Commercial Developments

   Consolidated

   Balances

   Revenues: (In Thousands)

   External customers	P=20,359,012	P=8,303,144	P=2,186,632	P=2,429,913	P=33,278,701
   Inter-segment Segment results:	31,812 P=20,390,824	- P=8,303,144	- P=2,186,632	41,624 P=2,471,537	- P=33,278,701*
   Income before income tax	P=10,846,593	P=1,289,757	P=447,451	P=1,796,233	P=14,380,034
   Provision for income tax	(1,882,236)	(287,161)	(79,017)	(264,510)	(2,512,924)
   Net income Net income attributable to Equity	P=8,964,357	P=1,002,596	P=368,434	P=1,531,723	P=11,867,110
   holders of the Parent	P=8,758,957	P=1,001,471	P=368,434	P=1,531,723	P=11,660,585
   Other information:
   Capital expenditures**	P=6,044,608	P=5,394,145	P=878,285	P=3,157,110	P=15,474,148
   Earnings before interests, taxes,
   depreciation and amortization
   (EBITDA)	15,008,459	2,593,062	717,596	2,268,730	20,587,847

   *Net of inter-segment transactions amounting to =P73 million.

   **Excludes capitalized interest

   March 31, 2025 (Unaudited)

   Commercial and

   Malls Residential

   Hotels and

   Convention

   Centers

   Integrated

   Commercial Developments

   Consolidated

   Balances

   Revenues: (In Thousands)

   External customers Inter-segment	P=18,833,501 32,118	P=9,697,145 -	P=2,029,073 -	P=2,213,776 33,868	P=32,773,495 −
   	P=18,865,619	P=9,697,145	P=2,029,073	P=2,247,644	P=32,773,495*
   Segment results:
   Income before income tax	P=9,769,321	P=2,546,654	P=377,894	P=1,686,237	P=14,380,106
   Provision for income tax	(1,728,349)	(467,275)	(68,757)	(251,246)	(2,515,627)
   Net income	P=8,040,972	P=2,079,379	P=309,137	P=1,434,991	P=11,864,479
   Net income attributable to Equity
   holders of the Parent	P=7,832,500	P=2,076,686	P=309,137	P=1,434,991	P=11,653,314
   Other information:
   Capital expenditures**	P=7,201,883	P=2,646,972	P=264,668	P=6,951,266	P=17,064,789
   EBITDA	13,536,381	4,023,801	632,200	2,041,095	20,233,477

   *Net of inter-segment transactions amounting to =P66 million.

   **Excludes capitalized interest

   Malls Residential

   Hotels and Convention

   Centers

   (In Thousands)

   Commercial and

   Integrated Commercial Developments

   Consolidated Balances*

   March 31, 2026 (Unaudited)

   Segment assets	P=508,164,605	P=383,128,751	P=28,181,519	P=192,903,984	P=1,110,879,784
   Segment liabilities	P=278,635,650	P=212,818,011	P=12,416,487	P=130,195,856	P=632,566,929
   December 31, 2025 (Audited)
   Segment assets	P=499,751,600	P=379,985,226	P=28,008,229	P=187,651,775	P=1,093,878,665
   Segment liabilities	P=273,536,963	P=210,461,843	P=11,764,547	P=130,554,790	P=624,799,978

   *Net of inter-segment transactions amounting to =P1,499 million and =P1,518 million as at March 31, 2026 and December 31, 2025, respectively.

   For the three-month periods ended March 31, 2026 and 2025, there were no revenue transactions with a single external customer which accounted for 10% or more of the consolidated revenue from external customers. The Company disaggregates its revenue information in the same manner as it reports its segment information.

   The Company disaggregates its revenue information in the same manner as it reports its segment information. The disaggregation of revenues based on nature (type of goods or service) is presented in the consolidated statement of income (i.e., rent and real estate sales). Nature of other revenues is further disaggregated in Note 17 to the consolidated financial statements. The timing of material revenue is disclosed in Note 7 to the consolidated financial statements.

   Seasonality

   There were no other trends, events or uncertainties that have had or that are reasonably expected to have a material impact on net sales or revenues or income from continuing operations.

5. Cash and Cash Equivalents

   This account consists of:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Cash on hand and in banks (see Note 16) Temporary investments (see Note 16)	P=3,579,465 31,830,797	P=4,464,410 23,180,734
   	P=35,410,262	P=27,645,144

   Interest income earned from cash in banks and temporary investments amounted to P=234 million and P=409 million for the three-month periods ended March 31, 2026 and 2025, respectively.

6. Receivables and Contract Assets

   This account consists of:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Trade:

   Sale of real estate (billed and unbilled)* Rent (see Note 16)	P=163,986,236 12,426,011	P=163,713,207 13,938,825
   Accrued interest (see Note 16)	272,488	302,141
   Nontrade and others (see Note 16)	3,441,023	3,274,337
   	180,125,758	181,228,510
   Less allowance for expected credit loss (ECLs)	729,391	735,876
   Less noncurrent portion of receivables from sale	179,396,367	180,492,634

   of real estate (see Note 12) 91,358,448 94,302,212

   P=88,037,919 P=86,190,422

   *Includes unbilled revenue from sale of real estate amounting to =P142,192 million and =P137,787 million as at March 31, 2026 and December 31, 2025, respectively.

   Interest income earned from receivables amounted to P=83 million and P=80 million for the three-month periods ended March 31, 2026 and 2025, respectively.

   The Company assigned billed and unbilled receivables from sale of real estate on a without recourse basis to local banks amounting to P=2,092 million and nil for the three-month periods March 31, 2026 and 2025, respectively (see Note 16).

   The discount on sale of receivable amounted to P=212 million and nil for the three-month periods ended March 31, 2026 and 2025, respectively.

   The movements in the allowance for ECLs related to receivables are as follows:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   At beginning of the period Reversals - net of provision	P=735,876 (6,485)	P=774,250 (38,374)
   At end of the period	P=729,391	P=735,876

   Receivables are assessed by the Company's management as not impaired, good and collectible.

7. Real Estate Inventories

   The movements in this account are as follows:

   	Land and Development	Condominium, Residential Units and Subdivision Lots for Sale	Total
   		(In Thousands)
   Balance as at December 31, 2024 (Audited)	=P55,782,795	=P21,144,732	=P76,927,527
   Development cost incurred	14,049,487	-	14,049,487
   Cost of real estate sold	(10,734,523)	(6,884,870)	(17,619,393)
   Transfers	(2,043,328)	2,043,328	-
   Reclassifications from investment properties (see Note 10)	297,595	-	297,595
   Translation adjustment and others	239,032	213,462	452,494
   Balance as at December 31, 2025 (Audited)	57,591,058	16,516,652	74,107,710
   Development cost incurred	5,012,874	-	5,012,874
   Cost of real estate sold (see Note 18)	(2,085,496)	(1,731,129)	(3,816,625)
   Transfers	(1,038,832)	1,038,832	-
   Translation adjustment	-	43,235	43,235
   Balance as at March 31, 2026 (Unaudited)	P=59,479,604	P=15,867,590	P=75,347,194

   Land and development pertain to the Company's on-going residential units and condominium projects.

   Condominium and residential units for sale which pertain to the completed projects. These are stated at cost as at March 31, 2026 and December 31, 2025.

   Contract fulfillment assets, included under land and development pertain to unamortized portion of land cost totaling P=2,437 million and =P2,406 million as at March 31, 2026 and December 31, 2025, respectively.

   Real estate sales amounted to =P7,757 million and P=9,217 million in March 31, 2026 and 2025, respectively, of which P=4,662 million and P=2,716 million pertains to sale of completed projects.

   Income from forfeitures, except accounts covered by Maceda Law, amounted to =P297 million and P=417 million for the three-month periods ended March 31, 2026 and 2025, respectively, presented under "Others - net" account in the consolidated statements of income.

8. Equity Instruments at FVOCI

   This account consists of investments in:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Shares of stock:

   Listed (see Note 16) Unlisted	P=17,023,602 9,078	=P18,998,972 9,078
   	17,032,680	19,008,050
   Less noncurrent portion	16,338,175	18,290,879
   	P=694,505	=P717,171

   Dividend income from investments at FVOCI amounted to P=143 million for the three-month periods ended March 31, 2026 and 2025 (see Note 16).

   The movements in the "Net fair value changes of equity instruments at FVOCI" account are as follows:

   March 31,

   2026

   (Unaudited)

   March 31,

   2025

   (Unaudited)

   (In Thousands)

   At beginning of the year P=15,628,583 =P17,807,766

   Unrealized gain (loss) due to changes in fair value (1,975,370) 905,367

   At end of the period P=13,653,213 =P18,713,133

9. Prepaid Expenses and Other Current Assets

This account consists of:

March 31,

2026

(Unaudited)

(In Thousands)

December 31,

2025

(Audited)

P=20,643,183 =P19,242,478

- 8 -

In 2026 and 2025, the Company disposed certain investment properties. The gain or loss on disposals is recognized under "Others - net" account in the interim consolidated statements of income.

Portions of investment properties located in China with total carrying value of P=1,576 million and P=1,543 million as at March 31, 2026 and December 31, 2025, respectively are mortgaged as collaterals to secure domestic borrowings (see Note 14).

Consolidated rent income from investment properties amounted to =P21,611 million and P=20,021 million for the three-month periods ended March 31, 2026 and 2025, respectively. Consolidated costs and expenses from investment properties amounted to P=9,795 million and P=9,427 million for the three-month periods ended March 31, 2026 and 2025, respectively (see Note 18).

Construction in progress includes commercial and integrated commercial development cost, construction of new malls, hotels and convention centers and redevelopment of existing malls amounting to =P168,090 million and P=160,944 million as at March 31, 2026 and December 31, 2025, respectively.

The outstanding contracts with various contractors related to the construction of on-going projects are valued at =P36,874 million and P=39,120 million as at March 31, 2026 and December 31, 2025, respectively inclusive of overhead, cost of labor and materials and all other costs necessary for the proper execution of the works.

Additions include interest capitalized to the construction of investment properties amounting to P=2,723 million and P=10,176 million for the three-month period ended March 31, 2026 and for the year ended December 31, 2025, respectively. Capitalization rates used range from 2.12% to 6.20% for the three-month period ended March 31, 2026 and from 1.93% to 6.59% for the year ended December 31, 2025.

The most recent fair value of investment properties is determined by an independent appraiser who holds a recognized and relevant professional qualification. The fair values of investment properties were based on market values using income approach and market value approach. The fair value represents the amount at which the assets can be exchanged between a knowledgeable, willing seller and a knowledgeable, willing buyer in an arm's length transaction at the date of valuation, in accordance with International Valuation Standards as set out by the International Valuation Standards Committee (see Note 20).

Other than those investment properties held as collateral, the Company has no restriction on the realizability of its investment properties.

11. Investments in Associates and Joint Ventures

The ownership interests in associates and joint ventures are accounted for under the equity method.

As at March 31, 2026, there were no changes in the Company's ownership interests in its investments in associates and joint ventures.

The carrying value of investment in Feihua Real Estate (Chongqing) Company Ltd. amounted to P=327 million and =P313 million as at March 31, 2026 and December 31, 2025, respectively.

The carrying value of investment in Ortigas Land Corporation (OLC) amounted to =P23,581 million and P=23,140 million as at March 31, 2026 and December 31, 2025, respectively which consists of its proportionate share in the net assets of OLC and fair value adjustments. The share in profit and total comprehensive income amounted to =P441 million for the three-month periods ended March 31, 2026 and 2025.

The carrying values of investments in Waltermart amounted to P=9,527 million and P=9,329 million as at March 31, 2026 and December 31, 2025, respectively. The aggregate share in profit and total comprehensive income amounted to =P198 million and P=160 million for the three-month periods ended March 31, 2026 and 2025, respectively.

The carrying value of investment in ST 6747 Resources Corporation amounted to =P2,894 million and P=2,753 million as at March 31, 2026 and December 31, 2025, respectively. The aggregate share in profit and total comprehensive income amounted to P=141 million and P=70 million for the three-month periods ended March 31, 2026 and 2025 respectively.

The Company has no outstanding contingent liabilities or capital commitments related to its investments in associates and joint ventures as at March 31, 2026 and December 31, 2025.

*Pertains to noncurrent portion of unbilled revenue from sale of real estate.

Bonds and deposits related to land acquisitions amounting to =P1,012 million and =P230 million were reclassified to investment properties as at March 31, 2026 and December 31, 2025, respectively (see Note 10).

Interest income earned from escrow and time deposits amounted to P=9 million and P=29 million for the three-month periods ended March 31, 2026 and 2025, respectively.

1. Accounts Payable and Other Current Liabilities

   This account consists of:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Trade payable (see Note 16)	P=55,771,138	P=58,046,755
   Tenants' and customers' deposits*	45,421,612	45,425,847
   Accrued operating expenses	21,453,365	16,602,410
   Deferred output VAT	18,511,192	18,904,128
   Retention payable	15,820,919	15,436,120
   Lease liabilities	12,311,955	12,353,909
   Accrued interest (see Note 16)	3,644,903	2,986,200
   Liability for purchased land	2,664,374	2,591,507
   Payable to government agencies	2,490,789	1,979,996
   Nontrade	510,740	501,252
   Others	2,028,938	2,121,114
   	180,629,925	176,949,238
   Less noncurrent portion	74,343,946	72,172,215
   	P=106,285,979	P=104,777,023

   *Includes unearned revenue from sale of real estate amounting to =P5,967 million and =P6,998 million as at March 31, 2026 and December 31, 2025, respectively.

   Lease liabilities included in "Other noncurrent liabilities" amounted to =P12,201 million and P=12,219 million as at March 31, 2026 and December 31, 2025, respectively. Interest on lease

   liabilities included under "Others - net" in the interim consolidated statements of income amounted to P=59 million and P=75 million for the three-month periods ended March 31, 2026 and 2025, respectively.

   The undiscounted payments of lease liabilities are scheduled as follows:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Within 1 year	P=873,147	P=873,684
   More than 1 year to 5 years	3,435,165	3,401,235
   More than 5 years	25,067,267	25,080,056
   	P=29,375,579	P=29,354,975

   Accrued operating expenses consist of:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Payable to contractors	P=10,403,484	P=9,007,616
   Utilities	3,299,157	1,703,443
   Marketing, advertising and others	7,750,724	5,891,351
   	P=21,453,365	P=16,602,410

   - 13 -

2. Loans Payable and Long-term Debt

   This account consists of:

   Availment Date Maturity Date Weighted Average Interest Rate Outstanding Balance

   March 31, 2026

   (Unaudited)

   December 31, 2025

   (Audited)

   (In Thousands)

   Philippine peso-denominated debt instruments U.S. dollar-denominated debt instruments*	July 26, 2016 - March 31, 2026 January 29, 2021 - January 23, 2026	January 12, 2026 - November 17, 2035 January 25, 2026 - December 12, 2030	Floating BVAL + margin; Fixed - 5.66% SOFR + spread; quarterly; Fixed - 4.75%	P=360,132,980 51,635,710	P=325,311,730 86,208,413
   China yuan renminbi-denominated loans**	May 6, 2021 - March 4, 2026	April 20, 2026 - June 24, 2037	Loan prime rate; annually; Fixed - 2.34%	16,284,398	13,146,777
   				428,053,088	424,666,920
   Less debt issue cost				1,929,063	1,912,681
   Less loans payable and current portion of long-				426,124,025	422,754,239
   term debt				83,123,280	99,294,642
   				P=343,000,745	P=323,459,597

   BVAL - Bloomberg Valuation Service SOFR - Secured Overnight Financing Rate

   *Hedged against foreign exchange and interest rate risks using derivative instruments.

   **Hedged against foreign exchange and interest rate risks using derivative instruments and secured by portions of investment properties located in China (see Note 10).

   Debt Issue Cost

   The movements in unamortized debt issue cost of the Company follow:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Balance at beginning of the year	P=1,912,681	P=1,715,421
   Additions	162,018	990,223
   Amortization	(145,636)	(792,963)
   Balance at end of the year	P=1,929,063	P=1,912,681

   Amortization of debt issue cost is recognized in the interim consolidated statements of income under "Others - net" account.

   Repayment Schedule

   The repayments of loans payable and long-term debt are scheduled as follows:

   Gross Loan Debt Issue Cost Net

   (In Thousands)

   Within 1 year	P=83,656,570	(P=533,290)	P=83,123,280
   More than 1 year to 5 years	255,438,292	(1,283,608)	254,154,684
   More than 5 years	88,958,226	(112,165)	88,846,061
   	P=428,053,088	(P=1,929,063)	P=426,124,025

   The loan agreements of the Company provide certain restrictions and requirements principally with respect to maintenance of required financial ratios and material change in ownership or control. As at March 31, 2026 and December 31, 2025, the Company is in compliance with the terms of its loan covenants.

   Interest expense incurred from loans payable and long-term debt amounted to P=3,068 million and P=3,428 million for the three-month periods ended March 31, 2026 and 2025, respectively.

3. Equity

   Capital Stock

   As at March 31, 2026 and December 31, 2025, the Company has an authorized capital stock of 40,000 million with a par value of P=1 a share, of which 33,166 million shares were issued

   (see Note 22).

   As at March 31, 2026 and December 31, 2025, the Company has 28,714 million and 28,798 million outstanding shares, respectively.

   Retained Earnings

   On April 29, 2025, the Company's Board of Directors (BOD) approved the declaration of cash dividend of P=0.480 per share or P=13,860 million to stockholders of record as of May 14, 2025, P=11 million of which was received by a subsidiary. This was paid on May 28, 2025.

   On December 1, 2025, the BOD approved the appropriation of retained earnings amounting to P=170,000 million. On the same date, the BOD approved the reversal of appropriated retained earnings amounting to =P100,000 million.

   As at March 31, 2026 and December 31, 2025, the retained earnings appropriated amounted to P=170,000 million for planned construction projects and land banking activities from 2026 to 2029. Approval of expansions and new projects is delegated by the BOD to the Executive Committee of the Company.

   The unappropriated retained earnings account is restricted for the payment of dividends to the extent of the accumulated equity in net earnings of subsidiaries, associates and joint ventures and the balance of treasury stock until such time that the Parent Company receives the dividends from its subsidiaries, associates and joint ventures. The retained earnings available for dividend declaration amounted to =P40,384 million and P=35,213 million as at March 31, 2026 and December 31, 2025, respectively.

   Treasury Stock

   On December 9, 2024, the BOD approved a share buyback program ranging from P=5 billion to P=10 billion.

   The share buyback transactions are as follows:

   March 31,

   2026

   (Unaudited)

   March 31,

   2025

   (Unaudited)

   (In Thousands, Except Per Share Data)

   Acquisition of treasury shares Total shares re-acquired	P=1,736,389 84,343	P=41,159 1,850
   Average price per share	P=20.59	P=22.25

   As at March 31, 2026 and December 31, 2025, the Company has 4,452 million and 4,368 million shares of treasury stock, respectively. This includes reacquired capital stock and shares held by a subsidiary, stated at acquisition cost of P=5,964 million and P=4,227 million as at March 31, 2026 and December 31, 2025, respectively.

4. Related Party Transactions

   The significant transactions entered into by the Company with its related parties and the amounts included in the accompanying interim condensed consolidated financial statements with respect to these transactions follow:

   Amount of Transactions

   Outstanding Amount [Asset (Liability)]

   March 31,

   2026

   (Unaudited)

   March 31,

   2025

   (Unaudited)

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited) Terms Conditions

   (In Thousands)

   Ultimate Parent Rent income	P=23,752	P=20,013	P=−	P=−
   Rent receivable	-	−	16,125	14,149	Non-interest bearing	Unsecured; not impaired
   Other revenues Other receivable	7,509 -	7,838 −	- 3,397	− 2,924	Non-interest bearing	Unsecured; not impaired
   Rent expense Trade payable	20,204 -	20,675 −	- (3,421)	− (67,323)	Non-interest bearing	Unsecured
   Equity instruments at FVOCI	-	−	90,584	102,201

   Amount of Transactions

   Outstanding Amount [Asset (Liability)]

   March 31,

   2026

   (Unaudited)

   March 31,

   2025

   (Unaudited)

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited) Terms Conditions

   Bank and Retail Group

   (In Thousands)

   Interest bearing based

   Cash and cash equivalents	P=90,720,340	P=83,269,147	P=31,951,199	P=26,197,964	on prevailing rates	Unsecured; not impaired
   Rent income	4,734,449	4,508,006	-	−
   Rent receivable	-	−	2,730,837	3,644,386	Non-interest bearing	Unsecured; not impaired
   Other revenues	19,071	17,455	-	-
   Other receivable	-	−	47,997	31,746	Non-interest bearing	Unsecured; not impaired
   Interest income	224,194	412,493	-	−
   Accrued interest receivable	-	−	82,572	58,543	Non-interest bearing	Unsecured; not impaired
   Dividend income	119,926	108,029	-	−
   Equity instruments at FVOCI	-	−	12,297,881	14,517,071
   					Interest bearing based
   Escrow and time deposits	72,231	174,928	1,637,124	1,567,882	on prevailing rates	Unsecured; not impaired
   Receivable financed	2,092,402	−	-	−	Without recourse	Unsecured
   Loans payable and long-term					Interest bearing based
   debt	2,750,330	11,686,500	(23,847,953)	(26,688,411)	on prevailing rates	Unsecured
   Interest expense including
   capitalized interest Accrued interest payable	429,531 -	473,842 −	- (141,163)	− (158,790)	Non-interest bearing	Unsecured
   Other expense	80,071	58,125	-	-
   Trade payable	-	−	(61,954)	(65,727)	Non-interest bearing	Unsecured
   Other Related Parties
   Rent income	123,198	117,829	-	−
   Rent receivable	-	−	77,394	75,858	Non-interest bearing	Unsecured; not impaired
   Other revenues	19,221	16,433	-	−
   Other receivable	-	-	13,262	13,242	Non-interest bearing	Unsecured; not impaired
   Rent expense	163	113	-	−
   Trade payable	-	−	(17,889)	(11,322)	Non-interest bearing	Unsecured

   Compensation of Key Management Personnel

   The aggregate compensation and benefits related to key management personnel for the three-month periods ended March 31, 2026 and 2025 consist of short-term employee benefits amounting to P=415 million and =P470 million, respectively, and post-employment benefits (pension benefits) amounting to =P53 million and P=62 million, respectively.

5. Other Revenues

   Details of other revenues are as follows:

   March 31,

   2026

   (Unaudited)

   (In Thousands)

   March 31,

   2025

   (Unaudited)

   Merchandise sales	P=928,099	=P895,990
   Cinema and event ticket sales	922,265	804,762
   Food and beverages	735,995	706,202
   Amusement income	405,640	358,820
   Bowling and ice skating fees	129,598	108,452
   Others (see Note 16)	790,063	661,678
   	P=3,911,660	=P3,535,904

   Others include advertising income, service fees, parking terminal, sponsorships, commissions and membership revenue.

6. Costs and Expenses

   This account consists of:

   March 31,

   2026

   (Unaudited)

   March 31,

   2025

   (Unaudited)

   (In Thousands)

   Depreciation and amortization (see Notes 10 and 12)	P=4,067,618	P=3,765,981
   Administrative	3,930,987	3,704,784
   Cost of real estate sold (see Note 7)	3,816,625	3,913,103
   Business taxes and licenses	1,655,258	1,231,515
   Marketing and selling expenses	1,501,500	1,570,816
   Film rentals	466,513	430,507
   Rent (see Note 16)	410,296	388,413
   Insurance	93,078	115,854
   Others	610,073	973,861
   	P=16,551,948	P=16,094,834

   Administrative expenses include utilities, security, janitorial and other outsourced services. Rent expense pertains to variable payments for various lease agreements. Others include bank charges, donations, dues and subscriptions, service fees and transportation and travel.

7. Financial Risk Management Objectives and Policies

   The Company's principal financial instruments, other than derivatives, comprise of cash and cash equivalents, accrued interest and other receivables, equity instruments at FVOCI and debt instruments. The main purpose of these financial instruments is to finance the Company's operations. The Company has other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.

   The Company also enters into derivative transactions to manage the interest rate and foreign currency risks arising from operations and its sources of finance (see Note 20).

   The main risks arising from the Company's financial instruments are interest rate risk, foreign currency risk, liquidity risk, credit risk and equity price risk. The Company's BOD and management review and agree on the policies for managing each of these risks.

   Interest Rate Risk

   The Company's policy is to manage its interest cost using a mix of fixed and floating rate debts. To manage this mix in a cost-efficient manner, it enters into interest rate swaps, in which the Company agrees to exchange, at specified intervals, the difference between fixed and floating rate interest amounts calculated by reference to an agreed-upon notional principal amount. These swaps are designated to economically hedge underlying debt obligations. As at March 31, 2026 and December 31, 2025, after considering the effect of interest rate swaps, approximately 60% and 54%, respectively, of its long-term borrowings, are at a fixed rate of interest.

   Foreign Currency Risk

   Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

   The Company's policy is to manage its foreign currency risk mainly from its debt issuances which are denominated in U.S. dollars by entering into derivative instruments aimed at reducing and/or managing the adverse impact of changes in foreign exchange rates on financial performance and cash flow.

   The Company's foreign currency-denominated monetary net assets amounted to US$12 million (P=710 million) as at March 31, 2026 and US$5 million (P=299 million) as at December 31, 2025.

   In translating the foreign currency-denominated monetary assets to peso amounts, the exchange rates used were P=60.75 to US$1.00 and =P58.79 to US$1.00, the Philippine peso to US dollar exchange rates as at March 31, 2026 and December 31, 2025, respectively.

   Liquidity Risk

   Liquidity risk arises from the possibility that the Company may encounter difficulties in raising funds to meet commitments from financial instruments or that a market for derivatives may not exist in some circumstance.

   The Company seeks to manage its liquidity profile to be able to finance capital expenditures and service maturing debts. To cover its financing requirements, the Company intends to use internally generated funds and proceeds from debt and equity issues.

   As part of its liquidity risk management program, the Company regularly evaluates its projected and actual cash flow information and continuously assesses conditions in the financial markets for opportunities to pursue fund-raising initiatives. These initiatives may include bank loans, debt capital and equity market issues. The Company also has readily available credit facility with banks and affiliates to meet its current and long-term financial liabilities.

   Credit Risk

   Credit risk is the risk that a counterparty will not meet its obligations under a financial instruments or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

   Equity Price Risk

   Equity price risk arises from the changes in the levels of equity indices and the value of individual stocks traded in the stock exchange.

   As a policy, management monitors its equity price risk pertaining to its investments in quoted equity securities which are classified as equity instruments at FVOCI in the interim consolidated balance sheets based on market expectations. Material equity investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by management.

   Capital Management

   Capital includes equity attributable to the owners of the Parent.

   The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value.

   The Company manages its capital structure and makes adjustments to it, in the light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, pay-off existing debts, return capital to shareholders or issue new shares.

8. Financial Instruments

   The following table sets forth the carrying values and estimated fair values of financial assets and liabilities and nonfinancial assets, by category and by class, other than those whose carrying values are reasonable approximations of fair values:

   March 31, 2026 (Unaudited)

   Carrying

   Value Fair Value Level 1 Level 2 Level 3

   (In Thousands)

   Financial Assets
   Derivative assets	P=818,250	P=818,250	P=-	P=818,250	P=-
   Financial assets at amortized cost:
   Escrow and time deposits (included under "Other noncurrent assets")	2,934,856	2,950,767	-	2,950,767	-
   Financial assets at FVOCI:
   Equity instruments	17,032,680	17,032,680	17,023,602	-	9,078
   Nonfinancial Assets* (see Note 10)	679,275,501	2,526,226,837	-	-	2,526,226,837
   	₱700,061,287	₱2,547,028,534	₱17,023,602	₱3,769,017	₱2,526,235,915
   Financial Liabilities
   Derivative liabilities	P=1,345,508	P=1,345,508	P=-	P=1,345,508	P=-
   Loans and borrowings:
   Long-term debt - net of current portion	343,000,745	330,066,167	-	-	330,066,167
   Tenants' deposits - net of current portion**	30,538,553	30,008,210	-	-	30,008,210
   Other noncurrent liabilities***	17,615,708	17,446,761	-	-	17,446,761
   	P=392,500,514	P=378,866,646	₱-	₱1,345,508	₱377,521,138

   *Consists of investment properties

   **Excluding residential customers' deposits amounting to =P2,105 million

   ***Excluding lease liabilities and nonfinancial liabilities amounting to =P30,680 million

   December 31, 2025 (Audited)

   Carrying Value Fair Value Level 1 Level 2 Level 3

   (In Thousands)

   Financial Assets
   Derivative assets	=P3,585,926	=P3,585,926	P=-	P=3,585,926	P=-
   Financial assets at amortized cost:
   Escrow and time deposits (included under "Other noncurrent assets")	5,080,646	5,134,182	-	5,134,182	-
   Financial assets at FVOCI:
   Equity instruments	19,008,050	19,008,050	18,998,972	-	9,078
   Nonfinancial Assets* (see Note 10)	665,641,251	2,505,428,940	-	-	2,505,428,940
   	=P693,315,873	=P2,533,157,098	=P18,998,972	P=8,720,108	P=2,505,438,018
   Financial Liabilities
   Derivative liabilities	=P325,918	=P325,918	P=-	P=325,918	P=-
   Loans and borrowings:
   Long-term debt - net of current portion	323,459,597	316,880,465	-	-	316,880,465
   Tenants' deposits - net of current portion**	29,844,159	30,189,754	-	-	30,189,754
   Other noncurrent liabilities***	17,785,636	17,669,853	-	-	17,669,853
   	=P371,415,310	=P365,065,990	P=-	P=325,918	P=364,740,072

   *Consists of investment properties

   **Excluding residential customers' deposits amounting to =P1,576 million

   ***Excluding lease liabilities and nonfinancial liabilities amounting to =P31,084 million

   Fair Value Hierarchy

   The Company uses the fair value hierarchy for determining and disclosing the fair value of financial instruments.

   During the three-month period ended March 31, 2026 and the year ended December 31, 2025, there were no transfers between Level 1 and Level 2 fair value measurements and no transfers into and out of Level 3 fair value measurements.

   The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate such value:

   Derivative Instruments. The fair values are based on quotes obtained from counterparties.

   Escrow and Time Deposits. The fair values are based on the discounted value of future cash flows using the prevailing market rates.

   Financial assets at FVOCI. The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business.

   Nonfinancial Assets. For fair values based on income approach, the significant assumptions used in the most recent valuation as at December 31, 2024 are discount rates of 9% to 10% and average growth rate of 5.00%, respectively. Fair values based on market approach were assessed using sales comparison of similar asset with adjustments ranging (±)5% to (±)30%. As at March 31, 2026 and December 31, 2025, management believes that the carrying values of additions to investment properties subsequent to the most recent valuation date would approximate their fair values.

   Long-term Debt. Fair value is based on the following: Debt Type Fair Value Assumptions

   Fixed Rate Loans Estimated fair value is based on the discounted value of future cash flows using the applicable rates for similar types of loans. Discount rates used is based on the prevailing market rate as at March 31, 2026 and December 31, 2025.

   Variable Rate Loans For variable rate loans that re-price every three months, the carrying value approximates the fair value because of recent and regular repricing based on current market rates. For variable rate loans that re-price every six months, the fair value is determined by discounting the principal amount plus the next interest payment amount using the prevailing market rate as at March 31, 2026 and December 31, 2025 up to the next repricing date. Discount rates used is based on the prevailing market rate.

   Tenants' Deposits and Other Noncurrent Liabilities. The estimated fair value is based on the discounted value of future cash flows using the applicable rates. The discount rates used range from 1.22% to 7.03% and 1.34% to 6.85% as at March 31, 2026 and December 31, 2025, respectively.

   The Company assessed that the carrying values of cash and cash equivalents, receivables, bank loans and accounts payable and other current liabilities approximate their fair values due to the short-term nature and maturities of these financial instruments.

   There were no financial instruments subject to an enforceable master netting arrangement that were not offset in the interim consolidated balance sheets.

   Derivative Instruments Accounted for as Cash Flow Hedges

   As at March 31, 2026 and December 31, 2025, the Company has outstanding arrangements to hedge both foreign currency and interest rate exposures on its foreign currency denominated debts.

   As the terms of the swaps have been negotiated to match the terms of the hedged loans, the hedges were assessed to be effective.

   The net movements in fair value of all derivative instruments are as follows:

   March 31,

   2026

   (Unaudited)

   December 31,

   2025

   (Audited)

   (In Thousands)

   Balance at beginning of period	P=3,260,008	=P4,720,380
   Net changes in fair value during the period	(964,152)	(680,285)
   Fair value of settled derivatives	(2,823,114)	(780,087)
   Balance at end of period	(P=527,258)	=P3,260,008

9. Provision for Income Tax

   The details of the Company's provision for income tax are as follows:

   March 31,

   2026

   (Unaudited)

   (In Thousands)

   Provision for current tax P=2,568,144

   March 31,

   2025

   (Unaudited)

   =P2,431,830

   Provision for deferred tax (55,220) 83,797

   P=2,512,924 =P2,515,627

10. Earnings per share (EPS) Computation

Basic/diluted EPS is computed as follows:

March 31,

2026

(Unaudited)

March 31,

2025

(Unaudited)

(In Thousands, Except Per Share Data)

SM Prime net income is at P=11.66 billion in Q1 2026

Financial and Operational Highlights

(In Million Pesos, except for financial ratios and percentages)

Three Months Ended March 31

Balance Sheet Data

Total Assets Investment Properties Total Debt

Net Debt Total Equity

Financial Ratios 202620252025

*excluding loans payable and current portion of long-term debt for refinancing

Revenues

SM Prime recorded consolidated revenues of P33.28 billion in the first quarter of 2026, increased by 2% from P32.77 billion in the same period of 2025, primarily due to the following:

Rent

SM Prime recorded consolidated revenues from rent of P21.61 billion in the first quarter of 2026, an 8% increase from P20.02 billion in the same period of 2025. 81% is contributed by the malls while 19% is from offices and hotels and convention centers.

Real Estate Sales

SM Prime's real estate sales is at P7.76 billion in the first quarter of 2026 coming from sales take-up and construction accomplishment of ongoing projects, including Sands Residences in Manila, Gold Towers Residential-Offices in Parañaque, Jade Residences in Makati, Vail Residences in Cagayan de Oro and Twin Residences in Las Piñas.

Other Revenues

SM Prime's other revenues is at P3.91 billion in the first quarter of 2026, an increase of 11% from P3.54 billion. Other revenues include ice skating, bowling, amusement and recreation operations, sale of food and beverages in hotels, sponsorships and advertising revenues, and cinema and event ticket sales. Cinema movies shown during the first quarter of 2026 includes Avatar: Fire and Ash, The Loved One, Call Me Mother, Project Hail Mary and Hoppers.

Costs and Expenses

SM Prime recorded consolidated costs and expenses of P16.55 billion in the first quarter of 2026, an increase of 3% from P16.09 billion, mainly from operating expenses which includes depreciation and amortization, taxes and licenses, marketing and selling expenses, utilities and manpower costs. Gross profit margin on real estate is 51% in 2026.

Other Income (Charges)

Interest Expense

SM Prime's consolidated interest expense is at P3.28 billion in the first quarter of 2026, a decrease of 4% from P3.43 billion. This is related to the interest-bearing debt used for various capital expenditure requirements and to refinance existing debt, net of capitalized interest on proceeds used for construction and development of investment properties.

Interest, Dividend and Others - net

Interest, dividend and others - net is at P0.93 billion in the first quarter of 2026 compared to P1.13 billion. This consists of interest income from cash and cash equivalents, dividend income from equity instruments, equity in net earnings from associates and joint ventures and foreign exchange gains and losses.

Provision for income tax

SM Prime's consolidated provision for income tax is at P2.51 billion in the first quarter of 2026.

Net income attributable to Parent

SM Prime's net income attributable to Parent is at P11.66 billion in the first quarter of 2026 compared to P11.65 billion in the same period of 2025.

Balance Sheet Accounts

SM Prime's total assets increased by 2% to P=1,110.88 billion from P=1,093.88 billion as of March 31, 2026 and December 31, 2025, respectively.

Cash and cash equivalents increased to P=35.41 billion from P=27.65 billion as of March 31, 2026 and December 31, 2025, respectively, mainly due to collections and proceeds from availment of new loans, net of payments for capital expenditures and maturing debts.

Equity instruments at fair value through other comprehensive income decreased to P=17.03 billion from P=19.01 billion as of March 31, 2026 and December 31, 2025, with equivalent decrease in net fair value changes of equity instruments at FVOCI to P=13.65 billion from P=15.63 billion as of March 31, 2026 and December 31, 2025, respectively, due to changes in fair values under this portfolio.

Prepaid expenses and other current assets increased to P=20.64 billion from P=19.24 billion as of March 31, 2026 and December 31, 2025, respectively, due to increase in input taxes and advances to contractors related to ongoing construction of residential projects and integrated commercial developments.

Derivative liabilities - net decreased to P=0.53 billion from derivative assets - net of P=3.26 billion as of March 31, 2026 and December 31, 2025, respectively, mainly due to maturities during the period and net fair value changes on interest rate and foreign exchange transactions. Unrealized loss on net fair value changes on cash flow hedges decreased to P=1.25 billion from P=0.57 billion as of March 31, 2026 and December 31, 2025, respectively.

Income tax payable increased to P=2.23 billion from P=0.94 billion as of March 31, 2026 and December 31, 2025, respectively, mainly due to provisions, net of payments made during the period.

Cumulative translation adjustment increased to P=7.11 billion from P=5.37 billion as of March 31, 2026 and December 31, 2025, respectively, as a result of foreign exchange movement between periods.

Treasury stock increased to P=5.96 billion from P=4.23 billion as of March 31, 2026 and December 31, 2025, respectively, mainly due to buy back of shares for the period.

Non-controlling interests increased to P=3.73 billion from P=3.52 billion as of March 31, 2026 and December 31, 2025, respectively, due to share in net income attributable to non-controlling interests for the period.

SM Prime has no known direct or contingent financial obligation that is material to SM Prime, including any default or acceleration of an obligation. There were no contingent liabilities or assets on SM Prime's balance sheet. SM Prime has no off-balance sheet transactions, arrangements, obligations during the reporting period as of balance sheet date.

As of March 31, 2026, SM Prime has ninety shopping malls in the Philippines with 9.8 million square meters of gross floor area (GFA) and nine shopping malls in China with 1.9 million square meters of GFA. In March 2026, the Company opened SM City Zamboanga in Zamboanga City, Zamboanga del Sur. The Company intends to open three malls, namely SM Nuvali in Sta. Rosa, Laguna, SM City General Trias in General Trias City, Cavite and SM City Tagum in Tagum City, Davao del Norte. These new malls, plus the expansion of the Company's existing malls, will provide an addition of more than

0.6 million square meters of GFA.

SM Prime is scheduled to open SM Seaside Arena in Cebu City in second quarter of 2026.

SM Prime currently has sixty-eight residential projects, forty-seven of which are in Metro Manila and twenty-one are outside Metro Manila.

SM Prime has twenty-three offices with a combined GFA of 1.6 million square meters. In March 2026, the Company opened Bicutan Towers 1 and 2 in Parañaque City.

SM Prime's hotels and convention centers business unit currently has a portfolio of ten hotels with

2,602 rooms, six convention centers and two trade halls.

SM Prime Q1 earnings up 11% to P=11.7 Billion

Financial and Operational Highlights

(In Million Pesos, except for financial ratios and percentages)

Three Months Ended March 31

Consolidated

Mar 31 Dec 31

Financial Ratios 20252024

*excluding loans payable and current portion of long-term debt for refinancing

SM Prime recorded consolidated revenues of P32.77 billion in the first quarter of 2025, an increase of 7% compared to P30.72 billion in the same period of 2024, primarily due to the following:

Rent

SM Prime recorded consolidated revenues from rent of P20.02 billion in the first quarter of 2025, a 8% increase from P18.54 billion in the same period of 2024. 85% is contributed by the malls while 15% is from offices and hotels and convention centers.

Real Estate Sales

SM Prime's real estate sales increased by 5% to P9.22 billion in the first quarter of 2025 from

P8.79 billion in the same period of 2024 due to sales take-up and construction accomplishment of ongoing projects, including Calm Residences in Laguna, Joy Residences in Bulacan, Gold Towers Residential-Offices in Parañaque and Glade Residences in Iloilo.

Other Revenues

SM Prime's other revenues increased by 4% to P3.54 billion in the first quarter of 2025 from

P3.40 billion in the same period of 2024. Other revenues include ice skating, bowling, amusement and recreation operations, sale of food and beverages in hotels, sponsorships and advertising revenues, and cinema and event ticket sales. Cinema movies shown during the first quarter of 2025 includes And the Breadwinner Is…, Captain America: Brave New World, Green Bones, Snow White, and Mufasa: The Lion King.

Costs and Expenses

SM Prime recorded consolidated costs and expenses is at P16.10 billion in the first quarter of 2025. Operating expenses includes depreciation and amortization, taxes and licenses, marketing and selling expenses, utilities and manpower costs. Gross profit margin on real estate is maintained at 58% in 2025.

Other Income (Charges)

Interest Expense

SM Prime's consolidated interest expense increased by 10% to P3.43 billion in 2025 compared to P3.13 billion in the same period in 2024 mainly due to the issuance of retail bonds in 2025 and 2024 to refinance existing debt and capital expenditure requirements spent for integrated property developments.

Interest, Dividend and Others - net

Interest, dividend and others - net decreased to P1.13 billion in the first quarter of 2025 compared to P1.34 billion in the same period of 2024. This consists of interest income from cash and cash equivalents, dividend income from equity instruments, equity in net earnings from associates and joint ventures and foreign exchange gains and losses.

Provision for income tax

SM Prime's consolidated provision for income tax is at P2.52 billion in the first quarter of 2025 compared to P2.25 billion in the same period of 2024.

SM Prime's net income attributable to Parent increased by 11% to P11.65 billion in the first quarter of 2025 compared to P10.46 billion in the same period of 2024.

Balance Sheet Accounts

SM Prime's total assets amounted to P=1,047.05 billion and P=1,019.43 billion as of March 31, 2025 and December 31, 2024, respectively.

Cash and cash equivalents increased to P=42.32 billion from P=31.25 billion as of March 31, 2025 and December 31, 2024, respectively, mainly due to collections from operations and net loan availments for debt refinancing.

Receivables and contract assets decreased to P=87.63 billion from P=92.51 billion as of March 31, 2025 and December 31, 2024, respectively, mainly due to increased collections for the period.

Derivative assets - net decreased to P=3.18 billion from P=4.72 billion as of March 31, 2025 and December 31, 2024, respectively, mainly due to net fair value changes on interest rate and foreign exchange swap transactions and maturities during the period.

Other noncurrent assets, which includes noncurrent portion of receivables from sale of real estate and bonds and deposits for real estate acquisitions, increased by 5% to P=134.38 billion from P=128.28 billion as of March 31, 2025 and December 31, 2024, respectively.

Cumulative translation adjustment decreased to P=2.95 billion from P=3.14 billion as of March 31, 2025 and December 31, 2024, respectively, as a result of foreign exchange movement between periods.

Non-controlling interests decreased to P=2.90 billion from P=3.15 billion as of March 31, 2025 and December 31, 2024, respectively, due to dividends declared for the period, net of share in net income attributable to non-controlling interests.

The Company has no known direct or contingent financial obligation that is material to the Company, including any default or acceleration of an obligation. There were no contingent liabilities or assets in the Company's balance sheet. The Company has no off-balance sheet transactions, arrangements, obligations during the reporting year as of balance sheet date.

SM Prime currently has sixty-seven residential projects, forty-seven of which are in Metro Manila and twenty are outside Metro Manila.

As of March 31, 2025, SM Prime's malls business unit has eighty-seven shopping malls in the Philippines with 9.4 million square meters of gross floor area (GFA) and eight shopping malls in China with 1.7 million square meters of GFA. In 2025, the Company will open three new malls in the Philippines namely, SM City Laoag, SM City La Union and SM City Zamboanga. These new malls, including expansion and redevelopment of existing malls, will provide an addition of more than 0.3 million square meters of GFA.

SM Prime's Commercial Properties Group has twenty-two office buildings with a combined GFA of almost 1.6 million square meters.

SM Prime's hotels and convention centers business unit currently has a portfolio of ten hotels with over 2,600 rooms, six convention centers and two trade halls.

Annex A

(Amounts in Thousands)

Trade:

The aging analysis of total receivables are as follows:

Receivables, except for those that are impaired, are assessed by the Company's management as not impaired, good and collectible.

SM PRIME HOLDINGS, INC. AND SUBSIDIARIES FINANCIAL RATIOS AND KEY PERFORMANCE INDICATORS

AS OF MARCH 31, 2026, MARCH 31, 2025 and DECEMBER 31, 2025

Ratio Formula March 31, 2026

(Unaudited)

March 31,

2025

(Unaudited)

December 31,

2025

(Audited)

(amounts in thousands, except ratios)

Current Ratio Total Current Assets divided by Total Current Liabilities

Total current assets P=220,936,832 P=233,933,492* P=211,201,669

Current liabilities 191,665,736 230,130,533 205,054,713 Less: Loans payable and current portion of long-

term debt** (83,123,280) (120,808,710) (99,294,642)

Divide by: Current liabilities excluding loans

2.0

2.1

2.0

payable and current portion of long-term debt 108,542,456 109,321,823 105,760,071 Current ratio

*excluding cash for refinancing

**due for refinancing

Acid Test Ratio Quick Assets divided by Total Current Liabilities

Cash and cash equivalents P=35,410,262 P=35,398,756 P=27,645,144

Receivables and contract assets 88,037,919 87,626,928 86,190,422

Equity instruments at fair value through other

comprehensive income - current 694,505

795,294

717,171

Quick assets 124,142,686 123,820,978 114,552,737

Divide by: Current liabilities excluding loans

1.1

1.1

1.1

payable and current portion of long-term debt 108,542,456 109,321,823 105,760,071 Acid test ratio

Solvency Ratio Total Assets divided by Total Liabilities

Total assets P=1,110,879,784 P=1,047,047,858 P=1,093,878,665

1.8

1.8

1.8

Divided by: Total liabilities 632,566,929 599,420,781 624,799,978 Asset to liabilities ratio

Debt-to-Equity Ratio

Total Interest-Bearing Debt divided by Total Equity Attributable to the Equity Holders of the Parent and Total Interest-Bearing Debt