Shang Properties profit drops 57% on lower condo sales, fair value gains

LISTED luxury property developer Shang Properties, Inc. reported a 56.98% decline in attributable net income to P4.03 billion for 2025, which it attributed mainly to lower condominium sales turnover and reduced gains from the fair value of its investment properties.

In a disclosure on Monday, the company said its consolidated revenue stood at P11.3 billion in 2025, slightly down from P11.6 billion in 2024.

Turnover consists of revenue from condominium sales, property rental, cinema, and hotel operations.

Sales of residential condominium units reached P3.6 billion, accounting for 32.14% of total turnover, down from 37.82% in the previous year. Revenue from property rental and cinema operations rose to P2.9 billion, a 7.41% increase from P2.7 billion in 2024.

Hotel operations, led by Shangri-La The Fort, Manila, generated P4.8 billion in revenue, representing 42.35% of total turnover and up by nearly 7% from P4.5 billion a year earlier.

Shang Properties said the decline in turnover was mainly due to lower condominium sales revenue, which was partly offset by higher income from property rental and hotel operations.

“Decrease in condominium sales of P757.2 million is due to the completed project, Shang Residences at Wack Wack,” the company said.

“There is an increase in the number of units sold for the newly launched projects such as Shang Summit and Shang Bauhinia Residences, but it does not compensate with the decrease in sales of Shang Residences at Wack Wack,” it added.

Revenue from rental and cinema operations increased by P192.6 million, driven mainly by higher occupancy rates and improved rental yields from office leasing at The Enterprise Center and mall operations at Shangri-La Plaza.

Revenue from hotel operations rose by P257.4 million, supported by higher occupancy at Shangri-La The Fort, Manila and increased income from other segments, including retail and residences.

Cost of sales and services rose to P4.7 billion, up by P441.2 million from P4.3 billion last year, while operating expenses fell to P2.5 billion, down by 21% from P3.2 billion a year earlier.

Other income declined by P5.2 billion, mainly due to lower fair value gains from investment properties compared with the previous year.

Shang Properties shares closed at P3.42 on Monday, down 0.87%. — Alexandria Grace C. Magno