SM Prime Holdings, Inc., the listed property developer of the SM Group, said on Tuesday it is spending at least P50 billion annually over the next two years to support its developmental goals.
Eight percent of the company’s capital expenditure will be allotted mostly to mall and residential developments and 20 percent to fund land banking.
“SM Prime will continue to expand its mall and residential businesses which are the major revenue drivers. We will further reach out to provincial cities as an integrated property developer and as a strategic partner, given the tremendous opportunities in light of higher government spending on infrastructure development across the country,” SM Prime President Jeffrey Lim noted in a disclosure to the Philippine Stock Exchange (PSE).
This year, the company is set to open five new malls outside Metro Manila. These are SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.
By the end of 2017, SM Prime will have 65 operating malls in the Philippines and seven in China with an estimated combined gross floor area of 9.2 million square meters.
In the Philippines, 43 percent of SM malls are located in Metro Manila, 35 percent in Luzon outside Metro Manila, 14 percent in the Visayas and 8 percent in Mindanao.
For its residential group, SM Prime is slated to launch this year 18,000 residential units in high-rise and mid-rise buildings as well as house and lot developments.
“The company’s high-rise residences deliver attractive urban lifestyles that serve the growing needs of start-up families and young professionals. To address an even larger market and cut across other segments in the housing spectrum, SM Prime is expanding its product line-up to develop more mid-rise buildings and single detached house and lot within the year,” the company said.
During its annual stockholders’ meeting, SM Prime declared a cash dividend of 0.26 per share totaling P7.5 billion for stockholders on record as of May 12, 2017 and payable on May 25, 2017.
This is equivalent to 35 percent of last year’s net income after tax.
“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,” it said.
SM Prime is the property vehicle of the SM Group under the umbrella conglomerate SM Investments Corp., which also counts SM Retail Inc. and BDO Unibank Inc. in its fold.