SM Prime Holdings Inc., a leading integrated property developer, allocated P80 billion in capital expenditures this year to finance the rollout of more malls, residential projects and land banking activities.
SM Prime said in a recent investor presentation it was planning to open four new shopping malls and expand five existing ones that would add around 300,000 square meters of gross floor area to the company’s mall portfolio.
The four new malls are SM City Roxas (41,000 sq. m.), SM City Tugeugaro (63,000 sq. m.) SM City Sorsogon (40,000 sq. m.) and SM City Tanza (60,000 sq. m.).
SM Prime said it would also expand the floor area of SM Mall of Asia, SM City Urdaneta, SM City Sta. Rosa, SM City Cagayan de Oro and SM City Iloilo.
It said the funding for this year’s capital expenditures would be from internally-generated funds and external borrowings.
The P80-billion programmed spending for 2022 is 23 percent higher than the P65 billion it actually spent in 2021.
SM Prime has 78 malls in the country with 8.9 million sq. m. of GFA and seven malls in China with 1.3 million sq. m. of GFA.
SM Prime said the expansion of SM Xiamen and the construction of the new SM Yangzhou already started.
The company is also expanding its residential business. SM Prime said in a recent regulatory filing it planned to launch 15,000 to 20,000 residential units this year.
SM Prime has 61 residential projects, including 46 in Metro Manila and 15 in the provinces.
The property firm also has 12 office buildings with combined GFA of 700,000 sq. m., five convention centers, two trade halls and nine hotels with over 2,200 room keys.
SM Prime reported a net income of P21.8 billion in 2021, up 21 percent from P18 billion it booked in 2020 on the back of higher revenues from malls.
Consolidated revenues reached P82.32 billion, including 56 percent from residential business and 36 percent from mall business. Other businesses accounted for the balance of 8 percent.
SM Prime president and chief executive Jeffrey Lim earlier said that the company would pursue business expansion to help boost the domestic economy.
“As we begin to see the results of joint efforts by the government and private organizations to manage the pandemic, SM Prime is set to pursue business expansions with broader funding options available locally and internationally. We will continue to work with the government in helping the nation rebound from the challenges in the past two years,” said Lim.
SM Prime posted P6.2 billion in consolidated net income in the fourth quarter as revenues improved 20 percent to P25.5 billion from P21.2 billion a year ago. Consolidated operating income also increased 67 percent in the fourth quarter to P10.8 billion from P6.5 billion a year earlier.