Sunday, May 4, 2008 [ philstar.com ]
Property developer Cityland Development Corp. (CDC) is raising its authorized capital stock to P3 billion from P1.9 billion to cover the grant of a 20-percent stock dividend to stockholders.
In a disclosure to the Philippine Stock Exchange, CDC said its capitalization will increase to three billion shares from 1.9 billion with a par value of P1 per share.
CDC has yet to set the record date for the stock dividend.
CDC was earlier authorized by the Securities and Exchange Commission to issue P1 billion worth of short-term commercial papers to fund the development of its projects.
The bond issue was assigned a PRS 2 rating by the Philippine Rating Services Corp., the country’s top credit rating agency.
A rating of PRS 2 is defined as “above average (strong) capability for payment of commercial paper issue on both interest and principal, with earnings trends and coverage ratios, while sound, more subject to variations.
In assigning the rating, Philratings took into account CDC’s strong position in the real estate industry, having developed over 35 condominium projects. It also holds the record of delivering all its launched projects.
According to Philratings, CDC has developed a good brand name for affordable condominium properties, established and known for timely delivery and is supported by satisfied customers.
In 2006, CDC reported a 48.5 percent jump in its net profit to P495 million from P333.6 million a year earlier.
Philratings said CDC’s progressive sell out and construction accomplishments of its recently completed and ongoing condominium projects; the interest income to be generated from financing the credit sales of these projects, coupled with operations under a prudently controlled cost environment, should allow the company to sustain the growth in its earnings.
“CDC has consistently managed to generate cash from operations, more than adequate to finance receivables and project development costs for the past three years; and such capability is expected to continue during the immediate term,” Philratings said.
______________________________________________________________________
