Also approved was FLI’s stock dividend worth P1.5 billion to cover the additional funds required by regulators for the capital increase. The stock dividend entitles shareholders on record to one new share for every five shares held. The dividend record date has yet to be set.
The proposed capital increase will expand the company’s ability to finance any possible acquisitions or investments, improve working capital requirements and optimize over-all capital structure.
Among FLI’s major projects are the 677-hectare township Timberland Heights and a leisure community called Laeuna de Taal in Talisay, Batangas.
Other company projects include Blue Palm Estate in Sto. Tomas, Batangas, a middle-income house and lot project called The Manors and Irvine Place and Villa Monserrat.
The company plans to open for sale this year new phases in its existing projects and launch projects in central and southern Philippines, away from its traditional market in the main island of Luzon.
FLI posted a net income of P596 million last year, 17 percent higher than the P508 million reported in 2003 on strong real estate sales.
Real estate sales booked last year went up 52 percent year-on-year to P2.24 billion.
FLI’s business strategy is to improve the efficiency of its business development and marketing groups.
FLI has a total land bank of 2,000 hectares across the country, 450 hectares of which have been contributed by joint venture partners. The company’s landbank is sufficient to support development activities for the next five to 10 years.