SM Prime delays REIT offering

Shopping mall operator SM Prime Holdings Inc. decided to put on hold its real estate investment trust (REIT) offer, from which it intends to raise some $1 billion, due to market volatility, according to a report by BusinessMirror.

Jeffrey C. Lim, the company’s president it decided to postpone the listing of its REIT this year.

“I don’t think we can do it [REIT] this year. We will continue to assess as we move forward, because so far, we’re able to find our requirements to borrow…it’s better for us to postpone it,” Lim said.

Proceeds of the said REIT float was supposed to fund SM’s 600-hectare reclamation in the Manila Bay, which the company said costs about $3 billion.

“The project (reclamation) right now is on track. We are following in our timeline, it has not moved yet. We have worked out a program to speed up the cuts up on our timeline,” Lim said.

The reclamation project covers 360 hectares and is undertaken jointly with SM Smart City Infrastructure and Development Corp. It will be connected to the Mall of Asia complex.

For now, SM Prime said it will continue its expansion program in its key business units and provide the company a stronger presence in major areas across the country.

The company said it is looking at P100 billion in capital expenditures (capex) this year to support various programs.

Lim said the company will use internally generated funds and take out loans from the banks to fund its capex.

SM Prime is scheduled to open four new malls in the Philippines this year, which will provide more than 400,000 square meters of gross floor area.

“We aim to launch 8,000 to 10,000 residential units for our residential business,” the company said.

SM Prime has declared cash dividends of P0.346 per share, amounting to P10 billion to all stockholders of record as of May 8 this year payable on or before May 22.

The declared total amount is higher than the P6.8 billion it declared in 2023.