SM Prime sets aside P80-B capex for 2022

SM PRIME Holdings, Inc. announced on Monday that it is allocating P80 billion as spending budget this year, of which 20% will be used for land banking.

SM Prime President Jeffrey C. Lim said that the remaining 80% of the planned capital expenditures (capex) will be used for the development of malls, residential and office spaces.

“Things are positive. We believe that even if we aren’t able to reach pre-pandemic levels before the end of the year, we remain optimistic about the prospects for 2022. Moving into the second half [of the year], things will be much better,” Mr. Lim said in a virtual stockholders meeting.

In April last year, SM Prime said that it had allocated P80 billion for its 2021 capex, focusing on its mall and residential business segments, and factoring in the challenges brought about by the pandemic.

This year, the group is planning to open SM City Tuguegarao, SM City Sorsogon and SM City Tanza.

In the same meeting, SM Prime approved the declaration of a regular cash dividend of P0.097 per share, or 15% of the company’s net income in 2021, amounting to P2.801 billion to all stockholders of record as of May 11, 2022 and payable on May 24, 2022.

In 2021, the company reported a 21% increase in consolidated net income to P21.79 billion from P18.01 billion while consolidated revenues were up to P83.32 billion from P81.9 billion.

SM Prime’s residential business unit led by SM Development Corp. (SMDC) was the biggest contributor to overall revenues at 56% or P49.5 billion.

In 2021, SMDC worked on expansions in various key areas, including Manila, Las Pinas, Pasay, Parañaque, Bulacan, Laguna, and Iloilo.

“With the easing of mobility restrictions in Metro Manila, SM Prime officially opened SM City Daet in Camarines Norte, opened Mall of Asia Square, which houses the first IKEA store in the Philippines, and opened SM City Grand Central in Caloocan,” Mr. Lim said.

“SM Prime’s other businesses like hotels, offices, and business centers remained resilient in 2021,” he added.

Last year, the company also launched the Mega Tower in Mandaluyong and officially opened Park Inn by Radisson in Bacolod.

“Our joint efforts since the pandemic started have generated tremendous support with the government and private sector to collectively work to contain the spread of COVID-19 (coronavirus disease 2019),” Mr. Lim said.

Over the pandemic, the company repurposed the Mall of Asia Arena to become a swabbing location and made its hotels serve as quarantine facilities.

“Our integrated development properties served a much larger purpose, this time for the health and welfare of our Filipinos,” he added.

SM Prime also embarked on its renewable energy program in support of the Department of Energy’s goal of expanding the renewable energy component of the country’s energy mix to 35% by 2030.

“We are committed to increase the share of renewable energy in electricity consumption by up to 50% across various business segments by end2022,” Mr. Lim said.

“Let us all continue pushing for a better tomorrow and work together and embark on a new era filled with remarkable partnerships and a safer and brighter future,” he added.

At the stock exchange, SM Prime shares were up by 0.28% or 10 centavos to finish at P36.15 on Monday. —