SM Prime announces share buyback plan

SM Prime Holdings Inc. (SMPH), the country's largest property developer, announced a share buyback program worth P5 billion to P10 billion to bolster its stock price after a recent market decline.

The company's board of directors approved the program, which aims to enhance shareholder value and signal its confidence in the company. SMPH delegated the final terms and implementation to management.

SMPH's share price has fallen from a 52-week high of P35.40 in February to a 52-week low of P25.70. It currently trades around P26.

Analysts attribute the decline in property stock prices to record-high unsold residential units and the prolonged period of high-interest rates. With a slower pace of interest rate cuts expected in 2025, analysts predict fewer property launches next year.

Despite the market challenges, SMPH plans to enter the luxury residential market with a 200-hectare development. These units will be priced between P25 million and over P100 million.