SM Prime set to return to bond market

***Photo taken yesterday April 25, 2023 showing SM City Fairview.***

MANILA, Philippines — SM Prime Holdings Inc. (SMPH) is returning to the bond market to raise another P100 billion.

The Sy-led integrated property developer in a stock exchange filing said its board of directors approved yesterday a proposed application to issue shelf-registered bond in the aggregate amount of P100 billion.

No further details on the proposed offering were disclosed.

The SEC’s shelf registration facility is an option for issuers to register and sell under the same regulatory documents securities, which they do not intend to sell right away.

In 2020, SMPH filed with the Securities and Exchange Commission (SEC) a shelf registration covering P100 billion worth of bonds to finance its pipeline of projects and other general funding needs.

The fifth and final tranche of the said SEC-approved P100 billion bond program was listed by SMPH at the Philippine Dealing & Exchange Corp. in May last year.

SMPH said it is looking at P100 billion for its capital expenditure program for 2024.

In 2023, the company reported a 33 percent jump in its net income to P40 billion from P30.1 billion in 2022.

Its revenues went up by 21 percent to P128.1 billion from P105.8 billion.

“The favorable result we achieved in 2023 reflects the strong support and trust from our tenants and customers despite the economic challenges encountered in 2023,” SMPH president Jeffrey Lim said.

“We continue to see this growth momentum this year as we pursue our expansion plans in our key businesses, and explore new opportunities to expand our businesses,” he said.

SMPH’s mall business, which accounted for 56 percent of the company’s consolidated revenues in 2023, saw its topline jump by 30 percent year-on-tear to P71.9 billion.

Mall rental income rose by 24 percent to P61.3 billion from P49.7 billion.

SMPH’s residential business group, led by SMDC, posted an eight percent improvement in revenues to P43.1 billion in 2023.

Reservation sales reached P102 billion, translating to more than 21,000 residential units sold in 2023.

Other key businesses including offices, hotels, and convention centers generated P13.1 billion in revenues, up 26 percent from P10.3 billion.

Revenues of SMPH’s office unit stood at P6.8 billion, while that of hotels and convention centers unit reached P6.3 billion last year.

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The article was originally published in PhilStar Global and written by Richmond Mercurio.