SM Prime Holdings Inc., the listed property flagship of the Sy Group, is lining up a balanced funding strategy for 2026, zeroing in on refinancing maturing obligations while bankrolling its flagship Bay City Reclamation Project.
Speaking at a virtual media briefing on Monday, February 16, Chief Finance Officer John Nai Peng C. Ong said the property giant is focused on two priorities next year. First, managing debts that are coming due. Second, securing capital for the massive reclamation development.
“For year 2026, we are basically looking at two aspects, one, maturing debts, and second, funding for the Bay City Reclamation Project,” Ong said.
SM Prime is casting a wide net to add upcoming maturities. Ong said the company has diversified funding sources across local and offshore markets to maintain flexibility and pricing leverage.
Among its offshore channels is its Euro Medium Term Note program, launched two years ago and structured for annual enrollment. The EMTN platform allows SM Prime to tap international debt markets as opportunities arise, complementing domestic bank, and capital market funding.
Ong said the company is finalizing its total 2026 capital expenditure, with a significant allocation earmarked for Bay City. At this stage, borrowing remains the primary funding base for the project as development accelerates.
The strategy underscores SM Prime’s reliance on debt as a core financing tool while keeping liabilities in check.
The group enters 2026 on solid financial footing. Net income rose 7 percent to ₱48.8 billion in 2025 from ₱45.6 billion a year earlier, supported by stronger commercial property revenues and disciplined cost controls. Consolidated revenues inched up to ₱141.1 billion.
Malls remained the top revenue driver at ₱85.1 billion, followed by residential at ₱42.5 billion. Hotels, convention centers, offices, and warehouses rounded out the mix.
