PHILIPPINE Realty and Holdings Corp. (PhilRealty) has secured regulatory approval to increase its authorized capital stock to P8 billion, as it looks to acquire more property assets from different firms.
In a disclosure to the stock exchange on Monday, PhilRealty said the Securities and Exchange Commission (SEC) approved amendments to its articles of incorporation that will bring its authorized capital stock to P8 billion composed of 16 billion shares with a par value of 50 centavos apiece.
Its previous authorized capital stock stood at P4 billion divided into eight billion shares at 50 centavos each.
The listed property developer earlier said that the increase will allow it to issue new primary shares to Greenhills Properties, Inc. (GPI) and Meridian Assurance Corp. (MAC), in exchange for several prime real properties.
GPI will be transferring two vacant lots in Bonifacio Global City covering a total of 3,200 square meters (sq.m.) to PhilRealty.
Meanwhile, MAC will hand over three office condominium units and six parking units in the Philippine Stock Exchange Center, formerly called the Tektite Building, in Ortigas Center. These properties span 699 sq.m. in total floor area. The company will also contribute two commercial condominium units and two parking units covering a total of 223 sq.m. in BGC’s Icon Plaza.
PhilRealty’s net income attributable to the parent jumped by 72% to P18.49 million in the first quarter of 2019, despite a nine percent decline in gross revenues to P233.40 million.
The company noted in a regulatory filing that lower costs offset the three percent decline in sales of real estate for the period. Rental income also grew by 16% due to more leasable spaces owned by PhilRealty at the time.
Shares in PhilRealty climbed 3.57% or 1.50 centavos to close at 43.50 centavos each at the stock exchange on Monday. — Arra B. Francia