SM Prime eyes up to P100 billion in 2027 capex as profit falls 14.8%
SM Prime Holdings, Inc. is weighing capital spending of as much as P100 billion in 2027, even after third-quarter net income fell 14.8% to P10.9 billion from P12.8 billion a year earlier as residential demand weakened.
President Jeffrey C. Lim told a media briefing on Monday that spending next year should be roughly in line with this year at around P60 billion, with the P80-100 billion marks possible for 2027. The listed developer will be more selective about which projects to prioritise and when to proceed, he said, putting ongoing mall developments and redevelopments first.
Consolidated revenues for the three months to September fell 11.3% to P31.4 billion from P35.4 billion. Malls brought in P21.9 billion, residential developments P5 billion, offices and warehouses P2.7 billion, and hotels and convention centres P2 billion. Lim said higher borrowing costs, elevated inflation and cautious consumer spending continued to weigh on residential demand, while commercial and hospitality growth helped keep revenues steady.
For the first nine months of 2026, net income slipped 4.8% to P35.4 billion and revenues were almost flat at P103.1 billion. Rental income rose 8.2% to P66 billion, but real estate sales fell 23.1% to P24 billion on slower revenue recognition and buyer backouts. Malls contributed 62% of consolidated revenues at P63.7 billion, up 10%, while residential revenues dropped 21% to P25.6 billion. Capital expenditure for the period fell 25.1% to P44.4 billion from P59.3 billion, mostly on mall and residential projects.
Shares in SM Prime fell 64 centavos, or 3.6%, to close at P17.16 apiece on Monday.
