SM PRIME Holdings, Inc. announced plans to allocate P100 billion in capital expenditures (capex) this year, with the majority directed toward residential projects and integrated property developments.
“Our growth will be driven by the mall business, while our robust project pipeline will enhance the expansion of strategic initiatives across our diversified portfolio,” SM Prime President Jeffrey C. Lim told the stock exchange on Monday.
This year, capex will mainly be allocated to malls, residences, and integrated property developments, SM Prime said. In 2024, SM Prime also earmarked a P100-billion capex budget.
The listed property developer anticipates continued corporate activity and sustained consumer demand growth in 2025, it said.
“We expect election-related spending, easing interest rates, and higher tourism spending to fuel our growth in 2025,” Mr. Lim said.
Of the total capex, P67 billion — the largest portion — will fund SM Residences and integrated property developments (IPDs).
These residential projects include regional, premium, and leisure developments, SM Prime said, noting that IPDs are large, mixed-use, master-planned urban centers across Luzon and Visayas.
Additionally, P21 billion is allocated for expanding SM malls’ gross floor area, it said.
New developments will add 205,400 square meters of gross floor area, while approximately 124,488 square meters of existing mall space are scheduled for redevelopment.
By yearend, the company expects its mall portfolio’s gross floor area to surpass eight million square meters.
Around P12 billion will be invested in its office, hospitality, and MICE (meetings, incentives, conferences, and exhibitions) businesses to expand and upgrade its facilities.
The planned investment will fund the construction of two new convention facilities, the renovation of hotel rooms, and the addition of food and beverage facilities at existing hotels, SM Prime said.
SM Prime is also set to develop new office towers and workspaces, including the Six E-Com Center in the Mall of Asia complex.
“These planned investments position us to meet evolving customer needs while driving SM Prime toward its next phase of growth,” Mr. Lim said.
For 2024, Sy-led SM Prime recorded a 14% increase in consolidated net income, reaching a record-high P45.6 billion, up from P40 billion in 2023, driven by strong holiday spending, the opening of two new malls, and higher real estate sales.
Consolidated revenue also grew by 10%, reaching an all-time high of P140.4 billion in 2024, compared to P128.1 billion in 2023, due to increased rental income, real estate sales, and revenues from services and experiential offerings.
At the local bourse on Monday, shares of the company fell by 30 centavos, or 1.27%, to close at P23.40 apiece. — Ashley Erika O. Jose