SM Prime to sustain P100-B capex for 2026
Real estate giant SM Prime is targeting to keep its capital expenditure (capex) budget steady at P100 billion for 2026, as the group is not putting the brakes on expansion.
“We will probably maintain the capex that we have this year,” SM Prime president Jeffrey Lim told reporters at a recent event last week.
He said the capex guidance for 2025 was P100 billion, with the spending heavily focused on malls, residences and integrated property developments.
In the first three quarters, SM Prime has already spent P59.3 billion.
Even as the Philippines saw a “tough” 2025, given the series of natural disasters and political noise dampening market confidence, the property titan remained optimistic about “sustainable and stronger momentum” next year.
Lim previously said: “2026 will likely bring its own set of challenges … But I believe SM Prime will be entering 2026 in a sustainable and stronger momentum, given the programs we have set in place. Sustainable growth is something we will look forward to moving forward.”
“Every business unit is gearing up for expansion, so the momentum is there,” he said.
Thanks to its healthy backbone, SM Prime managed to record robust profit growth of P37.2 billion in the first nine months, up 10 percent from a year ago.
In the third quarter alone, its earnings reached P12.8 billion, 8 percent higher from the past year.
The group’s mall business remained its top growth driver, accounting for 59 percent of the P103.4 billion in revenues, or P61 billion.
Revenues from offices and warehouses were flat at P4 billion.
Hotel and convention centers chipped in more at P6 billion. Its residential segment, while providing more than 31 percent of the top line, dipped 2 percent to P32.6 billion.
