SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, has set around PhP80 billion for its expansion plans this year. The allotted capital expenditure will support the company’s landbanking efforts and various expansion plans in key cities in the Philippines.
“The year 2019 marks another era for SM Prime as we celebrate our 25th year of being a publicly listed company in the Philippines. Moving forward, we will continue to deliver world-class products to our communities which will also translate into sustainable growth for our shareholders. Along with this continuous growth, we will keep in mind the vision Mr. Henry Sy, Sr. has set for the Company and its dedicated employees,” SM Prime President Jeffrey C. Lim said.
2019 Expansion Plans
SM Prime is set to expand its footprint in the Philippines with four new malls this year. These malls will add 200,000 square meters (sqm) of gross floor area (GFA) and will be located in developing provincial cities like SM Center in Dagupan in Pangasinan, SM City Olongapo Central in Zambales, SM City Butuan in Caraga Region, and SM Mindpro Citimall in Zamboanga.
Through the company’s primary residential business, SM Development Corp. (SMDC), SM Prime targets to launch around 15,000 to 20,000 residential units this year. These units will be composed of mixed high-rise and mid-rise buildings, as well as single-detached house and lot projects to address the growing demand among local and foreign buyers.
Among its other businesses, SM Prime is scheduled to launch this year, the NU Tower, its first university-office building in the Mall of Asia Complex, and two new hotels in Iloilo and Quezon City, the Park Inn by Radisson Iloilo and Park Inn by Radisson North EDSA.
Up and Coming Developments
SM Prime is set to introduce new large-scale integrated property developments in the Philippines that will carry the success brought about by the Company’s first lifestyle city, the Mall of Asia Complex in Pasay City. Following the NU Tower, the Mall of Asia Complex will soon house the three-tower FourE-Com Center and the first IKEA store in the Philippines in 2020.
Simultaneous projects are also under development in several of the company’s properties to transform its malls sites into mixed-use, integrated developments that will showcase SM Prime’s core strength. New developments will rise soon beside SM City Clark and Park Inn by Radisson – Clark where we will add SMX Clark, a grand terminal, additional retail spaces, and more offices to serve the growing demand in the area.
SM Prime will continue to maintain a robust balance sheet ensuring a strong financial position to provide stability and support to its aggressive growth plans. The company will finance its plans from its solid recurring income and by targeting a net debt to equity ratio of 50:50.
During its Annual Stockholders’ Meeting, SM Prime declared a regular cash dividend of PhP0.35 per share amounting to approximately PhP10.11 billion to stockholders of record as of May 8, 2019 and payable on May 22, 2019. This is equivalent to a 34% payout of last year’s net income.
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.