The board of shopping mall operator SM Prime Holdings Inc. has declared P5.34 billion in cash dividends, equivalent to about 15 percent of the previous year’s net income, to all its shareholders.
The company has approved cash dividends of P0.185 per share, with total value of P5.34 billion to stockholders of record as of June 30, payable on or before July 14.
“This is both an extraordinary and challenging time for each of us,” SM Prime President Jeffrey Lim said. “The company is taking all the necessary steps to ensure the well-being of our employees and society.”
“While we maintain a strong balance sheet, the company has decided to prioritize financial flexibility to prepare for what has yet to come. Management sees it best to conserve our resources as we strive to strike a balance between protecting the interest of our stakeholders and maintaining a sustainable growth trajectory for the company over the long term.”
Despite the impact of the pandemic, SM Prime said it remains optimistic about an eventual recovery in consumer spending.
The company retained its capital expenditures of P80 billion for the year as it focuses on nearly completed projects seen to bring about sustainable returns. At the same time, SM Prime will continue to explore opportunistic acquisitions and investments that are well within its core competencies.
On Monday, SM Prime said it is investing some P100 million to upgrade its e-commerce platform, which will connect brick and mortar stores to their customers, in keeping with pandemic-induced changes in consumer behavior.
“We acknowledge the growing popularity of e-commerce especially during the pandemic and SM Prime is allocating up to P100 million to accelerate our online presence with our e-commerce platform,” said Lim.
“We will start with the click and collect which enable our tenants and our customers to meet virtually in the platform. Moving forward we see e-commerce as a strategy to complement our malls business and connect our retail tenant to our customers.”