SM Supermalls, the shopping mall arm of listed property developer SM Prime Holdings, Inc., is expanding several of its key malls across the Philippines, including a 30% increase in gross leasable area (GLA) at SM City Sto. Tomas in Batangas, driven by strong tenant demand.

The mall operator is also adding 46,000 square meters (sq.m.) at SM City Iloilo and carrying out a two-story expansion at SM City Naga, SM Supermalls President Steven T. Tan announced during the company's Mid-Year Business Review on Tuesday. The projects reinforce SM's presence in regional urban centers outside Metro Manila, where mall developers have increasingly focused expansion as provincial cities grow.

"In Santo Tomas, that's in Batangas, first we opened two floors — ground floor and second floor. But the demand was so high. There were a lot of tenants who still wanted to do business. However, we didn't have a choice but to expand it to another 30% of the GLA," Mr. Tan said.

The Sto. Tomas expansion will feature a Green Haven that includes a cinema, co-working spaces, and wellness areas.

Alongside the new builds, SM is upgrading existing properties as part of a broader effort to adapt its malls to changing customer preferences. At SM Aura, the company plans to convert a grand staircase beside the mall into a library and redevelop its Sky Park into an urban community space, Mr. Tan said.

"A sky park becomes an urban space. Every one of these upgrades will help us serve growing communities and make every visit even better. So we are constantly adding fun, new ways for families to eat, play, and hang out at our malls," he said.

SM is also rolling out new entertainment concepts, including game parks, Funventures, and its first Eat & Play flagship at SM Nuvali. Mr. Tan said the company has also introduced what he described as the country's first cinema light-emitting diode (LED) screen, replacing the traditional projector system with a large LED display. The push toward leisure and entertainment offerings reflects mall operators' broader efforts to draw visitors beyond traditional retail shopping.

"We've launched fresh concepts, especially on entertainment. Just like the game parks, the fun ventures, and our first Eat & Play flagship at SM Nuvali. Plus, we also introduced the country's first cinema LED screen," he said.

The expansion and redevelopment program comes as SM Supermalls reported record first-half revenue of P41.8 billion, up 8% from P38.6 billion a year earlier. Total gross leasable area rose 3% to 5.1 million sq.m. from 5 million sq.m., while the number of tenants grew 4% to 23,174 from 22,192. Average daily foot traffic held steady at 3.7 million, according to the company.

"Our growth reflects the enduring trust of our tenants and shoppers. Despite macroeconomic headwinds, they continue to find value in the variety of our offerings and the strong sense of community in our malls," Mr. Tan said.

"This gives us confidence to keep investing in spaces and experiences that respond to their changing needs," he added.

SM Supermalls is also set to open SM Nuvali, its 91st mall, on Nov. 27. The company said SM Nuvali would expand its footprint in South Luzon and the Calabarzon region.

"Our newest flagship is designed around how the South is evolving. It's more than just a new mall. It represents the next expression of the SM experience," Mr. Tan said.

SM has likewise been expanding its sports, leisure, and entertainment offerings, adding 41 pickleball courts during the first half to bring its total to 102 courts across 32 malls nationwide.

On sustainability, SM raised rooftop solar capacity to 122 megawatt-peak (MWp) from 100 MWp, with further expansion planned by yearend. The company has also deployed 203 free electric vehicle charging stations across all 90 of its existing malls.

Mr. Tan said SM expects its reverse vending machine network to collect more than 1.5 million polyethylene terephthalate (PET) bottles by yearend.

The mall operator has also supported about 800 small businesses through monthly trade fairs nationwide, helping nearly 3,000 local entrepreneurs, according to Mr. Tan.

The company said its next phase of development will be guided by "My SM," a five-year program aimed at adapting its malls to changing customer needs, lifestyles, and preferences. How the "My SM" program is rolled out across SM's 90-plus malls, and whether tenant demand sustains the expansion pace, will be visible in the company's upcoming results.

"SM is so much more than just a place to shop. It's where communities connect, big ideas take root, and where possibilities turn into reality. That is what SM stands for today, tomorrow, and also, of course, most importantly, for the generations to come," Mr. Tan said. — Alexandria Grace C. Magno