SM Prime Holdings Inc., one of the leading integrated property developers in Southeast Asia, is subjecting its P80-billion capital expenditure budget for 2021 to a quarterly review.
During the firm’s annual stockholders’ meeting, SM Prime President Jeffrey Lim said the regular review was necessary given the current situation and challenges it faces due to the COVID-19 pandemic.
The P80-billion capex budget will be used by the company for its strategic landbanking as well as mall and residential development projects including the three malls it plans to open this year and the expansion of several existing malls.
“The planned mall launches and expansion projects will add around 367,000 square meters of gross floor area to the group’s portfolio,” the firm said.
Lim said that, “subject to local government guidelines and prevailing classifications, we intend to open three malls: SM City Grand Central in Caloocan City, SM City Daet in Camarines Norte, and SM City Roxas in Capiz.”
Meanwhile, SM Prime announced the election of three new Independent Directors to its Board of Directors led by former Bangko Sentral Governor Amando M. Tetangco Jr.
Joining Tetangco as new Independent Directors are former Pag-IBIG Fund Chief Executive Atty. Darlene Merie B. Berberabe and SGV & Co. Partner and former Chairman and Managing Partner J. Carlitos G. Cruz.
The three new Independent Directors were elected following the retirement of former BSP Governor Jose L. Cuisia Jr., Gregorio Kilayko, and Joselito Sibayan.
SM Prime reported a P18.0 billion consolidated net income for 2020 versus P38.1 billion in the previous year. Consolidated revenues last year amounted to P81.9 billion from P118.3 billion in 2019.
Lim said that, “As our core businesses slowly recover from the contraction brought about by community quarantines, our Company will continue providing avenues that will further enhance and facilitate these collective efforts with various organization, while sustaining our assistance to our employees, business partners and the communities we serve.”
In 2020, SM Prime’s Philippine mall business reported P23.6 billion revenues, as compared to P57.8 billion in 2019. Local malls’ rent income is P21.8 billion in 2020 and is 55 percent of the P48.4 billion in 2019.
SM Prime’s residential business, led by SM Development Corporation (SMDC), posted a 6 percent revenue increase in 2020 to P46.5 billion from P43.7 billion in the previous year. Operating income, likewise, increased by 16 percent to P19.7 billion from P17.0 billion.
SMDC’s reservation sales registered a 10 percent growth, bringing the sales take-up to P99.0 billion in 2020 from P90.00 billion in the previous year.
The commercial properties business segment reported P4.8 billion revenues in 2020 from the previous year’s P4.6 billion. The business’ operating income reached P3.9 billion from the previous year’s P3.8 billion. Meanwhile, the company’s hotels and convention centers business segment recorded P1.6 billion revenues for the year 2020 as compared to P5.1 billion in 2019. The company opened Olongapo City Convention Center in Zambales last year.