SM Prime sets P100-B capex for 2025

SM Prime Holdings Inc. is set to spend P100 billion in 2025, with the largest share going to integrated property developments (IPDs) under its residential business and mall operations.

In a regulatory filing, SM Prime said it will spend P67 billion for residential projects which will include regional, premium, and leisure developments, with the IPDs primarily in the Luzon and the Visayas regions.

It has also allocated P21 billion to add 205,400 square meters to its malls’ gross floor area (GFA), and to redevelop 124,488 square meters of its existing mall space. It expects to end the year with over 8 million square meters.

SM Prime will also invest P12 billion in its office, hospitality, and meetings, incentives, conferences, and exhibitions (MICE) businesses. This will include the construction of two new convention facilities, the renovation of hotel rooms, and the addition of food and beverage facilities.

“These planned investments position us to meet evolving customer needs while driving SM Prime toward its next phase of growth,” SM Prime president Jeffrey Lim said.

SM Prime reported a 14% growth in its consolidated net income to P45.6 billion in 2024, as consolidated revenues increased by 10% to hit an all-time high of P140.4 billion on the back of higher rental income and real estate sales, among others.

“We expect election-related spending, easing interest rates, and higher tourism spending to fuel our growth in 2025,” Lim said.

“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,” he added. —Jon Viktor D. Cabuenas/KG, GMA Integrated News