SEC okays Filinvest Land’s increase in capital stock

SEC okays Filinvest Land’s increase in capital stock
By Zinnia B. Dela Peña
The Philippine Star 01/28/2006

The Securities and Exchange Commission (SEC) has approved Filinvest Land Inc.’s increase in authorized capital stock to P16 billion from P10 billion.

The capital hike is intended to cover FLI’s planned stock dividend declaration.

Of the increase in authorized capital stock, at least 25 percent or P1.5 billion has been subscribed and fully paid in the form of stock dividends to be taken out of the unrestricted retained earnings as of Dec. 31, 2004, amounting to P6.29 billion.

The stock dividends shall be distributed propertionately among the stockholders of record as of such record date to be fixed by the SEC after all requisite approvals have been obtained.

As of May 27, 2005, FLI is 31.56 percent foreign owned.

FLI is eyeing a 12 percent to 15 percent increase in its sales this year, mainly coming from its middle-income housing projects. Net earnings are likewise seen to grow by 10 percent this year.

For 2005, the company expects to post a 10 percent rise in its net profit on sales of P3.3 billion. Last year, FLI reported a net income of P595.9 million, 17 percent higher than the previous year’s P508.5 million.

Bullish on the property sector, FLI has lined up 12 new projects, mostly located in Metro Manila. Around P1.4 billion has been earmarked for its capital expenditures this year, which will come from internally generated funds.

Of the 12 projects to be launched this year, three are affordable housing projects valued at between P1 million and P1.5 million. Two will rise in Sto. Tomas Batangas while the remaining one will be located in Calamba Laguna.

FLI also plans to launch two middle-income housing and two high-end housing projects, all within Metro Manila. The housing units catering to the high-end-market are priced at P2.5 million to P3 million.

Another three middle-income housing projects will be launched in Cebu and Davao to extend their presence out of Metro Manila.

Aside from this, FLI is constructing two Asenso Village projects, one in Calamba, Laguna and the other in Tanza, Cavite. Development cost for both projects is estimated to be between P100 million and P120 million with a total of 951 lots to be sold.

Asenso Village is designed as a business park devoted to the development of start-up and expanding SMEs.