SM Prime Holdings Inc. is entering 2026 with a clear message to investors and tenants alike: growth will continue, but every peso must earn its keep. The Sy-led property giant is preparing to roll out a ₱100-billion capital expenditure program this year, matching its spending level in 2025 as it sharpens its focus on execution, efficiency, and value creation across its sprawling portfolio.
Company president Jeffrey Lim said the size of the budget reflects confidence in the fundamentals of SM Prime’s core businesses, even as management becomes more selective in how and when capital is deployed. Rather than pulling back in the face of global and domestic uncertainties, the group plans to stay the course—while demanding clearer returns from every major investment.
Lim emphasized that the strategy for 2026 is less about expansion for its own sake and more about disciplined completion. Several calmly ambitious projects are already in the pipeline, and management wants to ensure they are delivered on schedule so revenues materialize as projected. Delays in past developments, he noted, have reinforced the importance of timing in unlocking value from capital-heavy projects.
The spending plan comes on the back of a year marked by resilience rather than spectacular topline growth. In the final quarter of 2025, SM Prime recorded consolidated revenues of ₱37.7 billion, down 7 percent year on year, but managed to hold net income steady at ₱11.6 billion. Cost discipline proved decisive, with total costs and expenses improving by 12 percent.
For the full year, net income climbed 7 percent to ₱48.8 billion, while consolidated revenues reached ₱141 billion, supported by steady performance across malls, residential developments, hotels and convention centers, as well as office and logistics assets. According to Lim, operational efficiency was the quiet driver behind those results, allowing the company to defend margins and turn modest growth into solid profitability.
Looking ahead, management expects 2026 to bring fresh challenges but also new opportunities, particularly as consumer activity and service-sector demand remain firm. Early indicators from the first weeks of the year suggest sustained mall foot traffic and tenant sales trends that align with internal forecasts.
Chief finance officer John Nai Peng Ong said the 2026 capital program will also address balance-sheet priorities, including the refinancing of maturing obligations. The company is exploring a mix of local and offshore funding options, while also preparing to raise debt to support major undertakings such as the Bay City Reclamation Project.
This, he said, allows SM Prime to keep growth projects moving without placing undue strain on liquidity.
Retail and services continue to anchor the group’s outlook. Ong pointed to consistent tenant sales reports and strong early-year mall activity as signs that consumer demand remains a reliable pillar of the broader economy—one that SM Prime intends to support with timely investments and upgraded assets.
As the year unfolds, the ₱100-billion plan signals a steady hand rather than a dramatic pivot. For SM Prime, 2026 is shaping up to be about precision over pace: investing heavily, but only where returns are clear, timelines are firm, and long-term value is unmistakable.