SM Investments Corporation, the flagship of the Sy family, is alloting capital expenditures of P110 billion to P115 billion this year, 44 percent higher than the P80 billion spent in 2023, even as it continues to be cautiously optimistic about its prospects.
During a briefing after the firm’s annual stockholders’ meeting, SM Senior Vice President for Finance Franklin C. Gomez said the capex does not include the budget of its banking units BDO Unibank and China Banking Corporation.
He noted that, the bulk of the capex, amounting to P100 billion will be accounted for by property development arm SM Prime Holdings Inc. which is launching more residential units, opening new malls, and undertaking a massive reclamation project in Manila Bay.
SMIC Chairman Amando M. Tetangco said that, “While global uncertainties continue to exist, we are optimistic about our outlook for 2024 and the continuation of our strong all-round performance.”
For his part, SMIC President and CEO Frederic C. DyBuncio said “we maintain our cautious optimism for the rest of 2024. We intend to continue investing in the Philippine growth story committed to be a catalyst for responsible development in the communities that we serve.”
“We remain positive in the growth of our core businesses, while optimizing their synergies with our portfolio investments,” he added.
DyBuncio noted, “Today, there is still a significant gap in accessing modern retailing, banking services and integrated property developments for many Filipinos.
“Our strategy is to continue to expand coverage nationwide to reach and create new markets to improve accessibility and inclusivity in these sectors to help bridge this gaps and provide more opportunities for underserved areas.”
SMIC intends to invest more in the logistics and renewable energy sectors going forward and also to look for similarly high growth opportunities in other sectors where there are strong synergies within our ecosystem of SM businesses.
“We’re targeting to increase the contribution of our portfolio investments to the mid teens over the medium term. We see growth in Logistics and renewables,” DyBuncio said.
He said “We will continue to invest in growth in the Philippines and we are committed to being a catalyst for responsible development. We have a young, dynamic, higher-earning population who will help support and drive economic activity.”
“There are many areas in the country which have yet to benefit from access to modern retailing, formal financial services and integrated property developments.
“Our strategy is to continue to expand coverage nationwide to create new markets that improve access to these sectors,” DyBuncio added.
He summarized that, “We expect our core businesses to continue its growth trajectory. Additionally, we anticipate that our portfolio investments will contribute significantly to our overall performance in the medium-term as these are well-positioned to capture opportunities in high growth sectors.”
Meanwhile, SMIC announced a substantial increase in its dividend payout to shareholders. Following a year of strong performance and strategic growth initiatives, the Board of Directors has approved a 20 percent increase from the previous year in dividends payout.
SMIC declared an increase in dividend payout to P11.0 billion or P9.00 per share from P9.2 billion or P7.50 per share in favor of stockholders on record as of May 9, 2024. The dividends are payable on May 23, 2024.
“For the third year in a row, we have substantially raised our dividends, which now meet the levels we achieved before the pandemic. This is the result of the strong performance by the group,” DyBuncio said.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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