SM Prime sets ₱100-billion capex for 2026

Sy-led property developer SM Prime Holdings Inc. is looking to spend some P100 billion this year as it seeks to sustain the growth of its retail and commercial segments moving forward.

According to SM Prime president Jeffrey Lim, the company is looking to spend the same amount as it did in 2025, with the breakdown still being finalized.

“We’ll be more strategic. I think every peso that we will spend should relate to, should generate value for our stakeholders so we will not cut our spending or delay to conserve costs, but we will ensure that our spending is sufficient and the returns are very clear before we commit to this capital,” he told reporters in a virtual briefing.

“I think we will also focus on the timely completion of our projects because in the past, we had some delays, so that we can turn over the products and units on time to be able to contribute to the revenue that we have projected for 2026,” he added.

SM Prime reported a 7% decline in its consolidated revenues during the fourth quarter of 2025 to P37.7 billion, while its net income was steady at P11.6 billion as it recorded a 12% improvement in its total costs and expenses.

This brought the full-year 2025 net income up 7% to P48.8 billion, as consolidated revenues grew to P141. billion on the back of the growth in its mall, residential, hotels and convention centers, and offices and warehouses businesses.

“Operational efficiency played a critical role in our performance in 2025. It enabled us to protect margins and translate modest growth into a solid bottom line,” Lim said.

“2026 will bring its own set of challenges but with disciplined execution and sharper customer focus, we expect to sustain our growth momentum,” he added.

SM Prime chief finance officer John Nai Peng Ong said this year’s capex program will also cater to the company’s maturing debts, for which it is looking at diversified options, both local and offshore. It also plans to borrow for the Bay City Reclamation Project.

“We see that retail as well as the service sectors, they continue to be steady drivers of our economy and that is evident by the foot traffic in the first weeks of the year 2026, and we have seen also consistent and expected tenant sales reported by our malls,” he said. — BM, GMA Integrated News