SM Prime: 30 years of growth and good

MANILA, Philippines — In a span of 30 years, SM Prime Holdings (PSE: SMPH) has become a dominant force in the Philippine property sector, driven by its iconic SM malls and the market-leading developments of SM Development Corporation (SMDC).

Tracing its origins back to a small shoe store founded by Henry Sy Sr. in downtown Manila, SMPH has grown into one of the most valuable firms in the country and a leading integrated property developer in Southeast Asia.

Beyond its impressive scale, SM Prime stands as a bellwether for the Philippines—its progression following the same arc as the nation’s economic and social advancement.

In the 1990s, the Philippines posted an average real GDP growth rate of 2.8% per year, owing to political instability, natural disasters and the Asian Financial Crisis.

During the same period, average lending interest rate was over 19%, reflecting the broader economic challenges faced by the country.

Against this backdrop, the SM Group founded and listed SMPH in July 1994 to organize and expand its chain of shopping malls. At the time, it only had four in its portfolio: SM North EDSA, SM City Sta. Mesa, SM Megamall and SM City Cebu.

After raising nearly P6 billion from the capital market, SM Prime aggressively expanded its mall network, cementing its position as the country’s largest mall operator and securing a spot in the Philippine Stock Exchange Index (PSEi) since October 1994.

Entering its second decade as a listed company, SM Prime led a transformative consolidation that altered the course of its growth trajectory.

Through a series of well-executed transactions, the SM Group unified its sprawling real estate interests under SM Prime, effectively turning the mall operator into a property conglomerate.

The entire process, from announcement to final regulatory approval, took less than five months. Its speed and ingenuity earned SM Prime the "Most Innovative Deal" award from the financial publication Alpha Southeast Asia.

Post-consolidation, SMPH’s market capitalization surged 133% to P950 billion by the close of 2023, up from approximately P408 billion in 2013.

Since its reorganization, SM Prime has consistently pushed boundaries in value