SM Prime Holdings, one of the Philippines’ largest property developers, has deferred its planned real estate investment trust (REIT) offering beyond 2026, citing unfavorable market conditions.
SM Prime chief finance officer John Nai Peng Ong said in a recent investors’ briefing that while the REIT remains part of the group’s long-term strategy, the listing would be delayed.
“The plan in terms of having a REIT is still there. But we have to be upfront to say that in terms of timing, we have to defer the planned REIT,” an SM Prime executive said during the presentation.
“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,” the executive said.
The REIT was expected to unlock value from SM Prime’s expansive portfolio of income-generating assets, particularly its shopping malls and office buildings.
The company previously planned a $1-billion REIT offering in 2023 that would own 12 to 15 of its malls, but that plan was also deferred due to market conditions.
With a strong recurring income base from its more than 80 malls and an expanding office portfolio, SM Prime has also been exploring alternative financing strategies, including green bonds and sustainability-linked instruments.
“We recognize that green or sustainability-linked instruments can also complement this strategy… but as of today, we have yet to tap them. We are open to it and that is why we have been studying to see if it is worth pursuing,” the executive said.
In a separate update, Ong said the company was seeing a recovery in the residential property market, with lower cancellations and steady take-up leading to a “gradual decline in inventory.”
“Once the market normalizes we should have enough land bank to capture renewed demand without rushing new launches,” Ong said.
