SM Prime Holdings Inc. (SMPH) said Friday it will re-evaluate plans for a $1-billion real estate investment trust (REIT) offering next year amid declining interest rates.
“I think definitely it will not be for this year. So, we will probably look at it next year,” said SMPH president Jeffrey Lim in a recent interview.
He said if the plan pushes through, the company would likely keep the planned $1-billion REIT offering size to attract foreign investors. It will also sell not more than a 40-percent stake to the public.
Lim said, however, the company is not a hurry to conduct an REIT offering as it has enough funds to finance expansion plans.
Lim said the company WOULD not want to sell more than 40 percent to the public.
He said SMPH, together with its parent firm SM Investments Corp., recently created a 3-billion-euro medium-term note (EMTN) program, which it could tap for future funding.
Lim said the company could also issue retail bonds for funding requirements.
SMPH reported in 2023 plans to form and list an REIT company that would own 12 to 15 of the company’s shopping malls across the country. The plan was deferred amid unfavorable market conditions then.
Meanwhile, Lim said the company was also on track to hitting a record net income for 2024.
“It will probably be a banner year because it’s also our 30th year,” Lim said.
SMPH booked a consolidated net income of P40 billion in 2023, marking a 33-percent increase from 2022.
Data showed that in the first half of 2024, SMPH achieved a P22.1-billion consolidated net income, or 13 percent higher than P19. 4 billion in the first half of 2023.
Prospects for the second half of the year remain positive amid slowing inflation and decline interest rates, the company said.
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