SM Prime earmarks P80 billion for 2021 capex

Property giant SM Prime Holdings Inc. (SMPH) is set to spend some P80 billion this year, mainly to finance the company's mall and residential segment, as well as to acquire more land to boost its portfolio.

According to SMPH president Jeffrey Lim, the 2021 capital expenditure program will be subject to a quarterly review, given the current situation brought about by the COVID-19 pandemic.

"This will be primarily used for mall and residential development as well as strategic land-banking activities," he said during the company's annual stockholders' meeting on Tuesday.

The company plans to launch three new malls this year to boost its gross floor area by 170,000 square meters: SM City Daet in Camarines Norte, SM City Roxas in Capiz, and SM City Grand Central in Caloocan City. The launches, however, are subject to guidelines set by the local government units and on the prevailing quarantine classifications.

Three new independent directors were also voted on Tuesday: former Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco, Jr., Darlene Marie Berberabe, and J. Carlitos Cruz.

SMPH reported a 53% decline in its net income in 2020 to P18 billion from P38.1 billion in 2019, due to a drop in mall revenues as lockdowns were implemented to curb the spread of COVID-19.

The company currently operates malls in the Philippines in China, particularly in the cities of Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, Tianjin, and Suzhou. It also owns residential projects, commercial projects, hotels, convention centers, and trade halls, as well as amusement parks.

Its subsidiaries include SM Development Corporation, Costa del Hamilo Inc., Tagaytay Resort Development Corporation, SM Arena Complex Corporation, SM Hotels and Conventions Corporation, and SM Land (China) Limited.

Shares in SMPH closed Tuesday up P0.75 or 2.11% at P36.25 apiece from Monday's finish of P35.50. — BM, GMA News