SM Prime delays REIT IPO to beyond 2026

SY-LED property developer SM Prime Holdings, Inc. is deferring the initial public offering (IPO) of its planned real estate investment trust (REIT) to beyond 2026, citing unfavorable market conditions.

“Instead of coming up with a REIT in 2026, we may have to defer it a bit and we have to take into account market conditions as well as liquidity in the market,” SM Prime Chief Finance Officer John Nai Peng C. Ong said during an investor relations event hosted by the Philippine Stock Exchange (PSE) on Wednesday.

“While the view on REIT is still there, the timing may have to be deferred beyond the year 2025 and I think personally even beyond 2026,” he added.

SM Prime’s REIT is among the big-ticket IPOs currently deferring their planned listings due to unfavorable market conditions.

The PSE is aiming to record six IPOs this year, but only one has gone public so far, with Cebu-based fuel retailer and distributor Top Line Business Development Corp. in April.

In relation to this, Mr. Ong said that SM Prime is studying the use of green financing as part of the company’s fundraising initiatives.

“We have been studying to consider also sustainability-linked instruments and green bonds. As of today, we have yet to tap green or sustainability-linked instruments. We are open to it. That is why we have been studying to see if it is worth pursuing,” he said.

Meanwhile, Mr. Ong said SM Prime expects to continue its growth momentum in the second half, led by improving economic data.

“Looking ahead, we remain optimistic as macro tailwinds continue to support demand across our portfolio. Our consumer-facing businesses are benefiting from resilient gross domestic product growth and strong household spending,” he said.

“In hospitality, the recovery in tourism and MICE (meetings, incentives, conferences, and exhibitions) activity is gaining traction. Meanwhile, improved business confidence and a flight to quality are driving momentum in commercial leasing. Taken together, these trends provide strong visibility for sustainable growth and reinforce our confidence in delivering solid results across all business segments,” he added.

For the first half, SM Prime posted an 11% increase in net income to P24.5 billion as consolidated revenue grew by 5% to P68 billion on higher rental income, real estate sales, and ancillary revenues.

Philippine inflation slowed to a near six-year low of 0.9% last month due to easing utilities and food costs.

SM Prime shares were last traded on Wednesday, unchanged at P23.60 per share. — Revin Mikhael D. Ochave