Property developer SM Prime Holdings Inc. (SMPH) said Monday it plans to raise up to P100 billion from the issuance of retail bonds.
SMPH said in a disclosure to the stock exchange its board of directors approved the proposed filing of bond shelf-registration program worth P100 billion.
Under the Securities and Exchange Commission’s rules, bond shelf-registration program may be issued in tranches for a period of three years.
SMPH did not say how it would use the proceeds from the fund-raising plans, but reported that it would allocate P100 billion for its 2024 capital expenditure program.
SMPH said in a separate disclosure that it posted a consolidated net income of P40 billion in 2023, up 33 percent from P30.1 billion in 2022.
Consolidated revenues amounted to P128.1 billion, higher by 21 percent than P105.8 billion, while consolidated operating income grew 24 percent to P61.3 billion from P49.2 billion.
“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023. We continue to see this growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” SMPH president Jeffrey Lim said.
The group’s mall business accounted for 56 percent of total consolidated sales, while malls and other businesses accounted for the remaining 44 percent.
Mall revenues rose 30 percent to P71.9 billion, from P55.4 billion in 2022 as rental income grew 24 percent to P61.3 billion.
SM Prime’s residential business group, led by SM Development Corp., recorded an 8 percent growth in revenues to P43.1 billion in 2023 from P40.1 billion in 2022.
Reservation sales reach P102 billion in 2023, which translated to more than 21,000 residential units sold in 2023.
SMPH’s other key businesses, which include offices, hotels, and convention centers, reported revenues of P13.1 billion, a 26-percent increase from P10.3 billion in 2022.
Its office unit posted P6.8 billion in revenues, while hotels and convention centers unit reached
P6.3 billion in sales in 2023.