SM Investments earmarks some P120B for 2024 capex

Sy-led retail giant SM Investments Corp. (SMIC) has allocated some P120 billion for its capital spending in 2024, with bulk going to its property business which is set to open four malls this year.

Franklin Gomez, SMIC senior vice president for finance, said the company is looking at a range of P110 billion to P120 billion for its capital expenditure (capex) this year, but the figure could go even higher.

"I can't give you a specific number because it's a range... 110 [billion pesos] to 120 [billion pesos] thereabouts, it could be higher, it could be lower," he told reporters in Pasay City.

"Our spending, our capex in 2023 was around about 80 billion [pesos]. The projection this year for the group—that excludes the banks, these are all the consolidated subsidies—is around 110 to 115 [billion pesos] more or less," he added.

The biggest driver of spending would be SMIC's property unit, SM Prime Holdings Inc. (SMPH)—which operates SM Malls—earlier announced a P100-billion capex for 2024 to finance its expansion plans which includes four malls with over 400,000 square meters of gross floor area (GFA).

Both companies are set to tap the overseas market with a $3-billion Euro Medium Term Note (EMTN) programme, which is set to be the largest issuance by a Philippine company.

Gomez said this will diversify the group's sources of funding, as it continues to look into expansion opportunities.

"As you know, the company has been in its continuous expansion so we will always be in need of financing. We are investing in fixed capital which would require a steady flow of sources of financing for the company, so it's just a way for us to expand the portfolio of our sources," he said.

During the company's annual stockholders' meeting, SMIC chairperson Amando Tetangco Jr. said the firm seeks to grow the share of its portfolio investments such as 2GO Group Inc. and Airspeed, both of which are involved in the courier solutions business.

"We're targeting to increase the contribution of our portfolio investments to the mid-teens over the medium term. We see gold in logistics and renewables," he said.

SMIC earlier entered into the renewables industry through Philippine Geothermal Production Company (PGPC), which last year announced plans to develop five new geothermal power projects in the country.

SMIC's businesses also include retail through The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., and Alfamart.

According to SM Retail chief financial officer Jonathan Ng, the group is looking at putting up 400 new Alfamart stores, and around 100 stores for the other retail business units this year.

SMIC also counts as subsidiaries BDO Unibank Inc. and China Banking Corp.

Shares in the company were last traded at P947.00, up by P40.00 or 0.42% from Tuesday's finish of P943.00. — VDV, GMA Integrated News