Posted on October 02, 2013 10:32:27 PM
[ BusinessWorld Online ]
PHILIPPINE RATING Services, Inc.
(PhilRatings) has assigned the highest grade for Filinvest Land, Inc.’s planned
P7-billion bond issuance, the local debt watcher said in a statement yesterday.
“Filinvest Land’s proposed bond
issuance of P5 billion, with a P2 billion oversubscription option and a tenor
of seven up to 10 years was assigned a PRS Aaa issue credit rating…”
PhilRatings said.
Obligations rated PRS Aaa are of the
highest quality with minimal credit risk due to the debtor’s capacity “to meet
its financial commitment on the obligation is extremely strong.”
4th-QUARTER PROJECTS
Filinvest Land, in a separate
statement attached to a disclosure yesterday, said proceeds will be used to
partially finance “projects that are targeted to be undertaken by the company
in the fourth quarter” and its P27.3-billion capital expenditure (capex) for
next year.
“The capex includes P9.9 billion for
mid-rise and high-rise projects, P2.3 billion for horizontal or subdivision
projects, P5.5 billion for office buildings, P7.7 billion for commercial/retail
projects, and P1.9 billion for raw land acquisition,” the company said.
Ratings for Filinvest Land’s
outstanding P4.5-billion bonds due in 2014, P3-billion bonds due in 2016, and
P7-billion bonds due in 2019 were also maintained at PRS Aaa.
According to PhilRatings, the grade
reflects the several factors: the firm’s sustained growth of real estate and
leasing operations resulting in strong income generation; conservative debt
position and high financial flexibility; established brand name and track
record; its focused strategy with a geographically diverse portfolio and
substantial land bank for future growth; and economic and industry conditions
are seen to remain favorable in the medium-term.
REVENUE STREAMS
Filinvest Land specializes in the
socialized, affordable and middle-income housing segments.
The property developer also has
leasing operations from its portfolio of office buildings and a retail mall.
The company had over 100 projects in
39 cities across the country, with a land bank of 2,251 hectares as of
end-2012, according to PhilRatings.
“Despite the aggressive expansion of
the company, its debt-to-equity ratio and debt-to-capitalization ratio remained
relatively conservative at 0.57x and 36.2%, respectively, as of the end of the
first half of 2013,” PhilRatings said.
At the same time, the debt watcher
said the “prospects for the real estate industry continue to remain strong,
with demand remaining highly supportive given the existence of a substantial housing
backlog, a growing business process outsourcing industry and rising disposable
incomes.”
“Such factors bode well for the
continued expansion plans of the company,” PhilRatings said.
Filinvest Land recorded P1.72-billion
profit for the first half, up by 12.42% from P1.53 billion a year ago.
This as revenues increased by 18.48%
to P6.22 billion from P5.25 billion, while cost and expenses rose by 23.74% to
P4.17 billion from P3.37 billion.
Shares of Filinvest Land gained two
centavos or 1.24% to close P1.63 apiece yesterday from P1.61 each on Tuesday.
-- Cliff Harvey C. Venzon
_____________________________________________________________
