Coal prices have climbed to their highest level in a decade. Rebounding electricity usage in China have lifted demand for coal while supplies have been crimped by a closed mine in Colombia and flooding in Indonesia and Australia. Distorted trade flows caused by a Chinese ban on Australian coal also contributed to the short supplyContinue reading “Decade high coal prices to deliver windfall to DMC, Homes to boost results”
Category Archives: Real Estate
HOUSE’s cash dips even after issuance of 3.7 Billion preferred 8990B
8990 Holdings (HOUSE) released on 24 June 2021 its 2020 audited financial results and its first quarter 2021 financial results. At the end of the first quarter of 2021 HOUSE had a cash balance of only 321 Million Pesos. That is significant drop from the 1.2 Billion Pesos it held as of the end ofContinue reading “HOUSE’s cash dips even after issuance of 3.7 Billion preferred 8990B”
DMC’s key units performed better in Q1 2021 than in Q1 2019
DMCI (DMC) Holdings Incorporated’s key units performed better in Q1 2021 than during the pre-pandemic Q1 2019. DMCI Homes becomes the leading net income contributor for DMC in the first quarter of 2021. It even surpassed the coal and power generating unit, Semirara Mining and Power, in net income. The Q1 2021 net income ofContinue reading “DMC’s key units performed better in Q1 2021 than in Q1 2019”
Filinvest Land has highest yield but lowest valuation among peers
Among the country’s biggest real estate developers FLI has the highest dividend yield at 3.87% but the lowest P/E valuation at 8.39. FLI’s net income for 2020 was down to 3.96 Billion Pesos from 6.52 Billion Pesos in 2019. Despite the significant decrease in net income, FLI was able to generate cash from operations ofContinue reading “Filinvest Land has highest yield but lowest valuation among peers”
Robinsons Land’s (RLC) funding access earns it full faith of customers
For the year 2020 rental income of Robinsons Land (RLC) was down 4.8 billion Pesos as compared to 2019. Understandably rental income is down during the year because the government imposed mobility restrictions on the population to counter the pandemic. While rental income is down, RLC grew its real estate sales. Real estate sales wereContinue reading “Robinsons Land’s (RLC) funding access earns it full faith of customers”
HOUSE facing 23.2B debt repayment hires new external auditor
8990 Holdings (HOUSE) disclosed on 26 February 2021 that it has appointed Ramon F. Garcia & Company as its new independent external auditor for the fiscal year 2020. Ramon F. Garcia & Company replaced Punongbayan & Araullo as HOUSE’s independent external auditor. HOUSE said that the change in external auditor was made in pursuance toContinue reading “HOUSE facing 23.2B debt repayment hires new external auditor”
CLI yields 4.18% as cash dwindles and debts balloon
Cebu Landmasters (CLI) ended the year with a cash balance of 0.8 Billion Pesos down from last year’s 0.92 Billion. Cash is dwindling because operating activities and capital expenditures are eating cash coming in from revenues and net borrowings. As of the end of the year CLI booked 6 Billion as current receivables an increaseContinue reading “CLI yields 4.18% as cash dwindles and debts balloon”
Suntrust Home is now a casino start-up; to open just-in time for recovery
Suntrust Home Developers (SUN), the former BW Resources, is now a casino start-up. SUN entered into a Co-Development Agreement (CDA) for the construction and operation of a 5-star hotel and casino in Parañaque City. Under the CDA, SUN would lease the project site from Westside and Travellers International Hotel Group, Inc. (Travellers) and Westside wouldContinue reading “Suntrust Home is now a casino start-up; to open just-in time for recovery”
Traders betting on LAND and CDC benefiting from low interest rate regime
Shares of home developers City & Land Developers (LAND) and Cityland Development (CDC) jumped 22.79% and 17.95% respectively on 30 March 2021. LAND is a subsidiary of CDC. Both companies are mostly into residential development. Trading of LAND and CDC registered volumes far above 65-day averages. The sudden interest on LAND and CDC by investorsContinue reading “Traders betting on LAND and CDC benefiting from low interest rate regime”
DM Consunji (DMC) sustains dividend distribution, yields 8.5%
DMCHI Holdings (DMC) declared a cash dividend of 0.48 Pesos a share on 29 March 2021. The dividend declared per share is the same amount of dividend declared last year. With DMC closing at 5.65, the dividend declared would indicate a yield of 8.5%. DMC’s total dividend payout would amount to 6.37 Billion Pesos. SomeContinue reading “DM Consunji (DMC) sustains dividend distribution, yields 8.5%”
After AREIT deal release, ALI trades 2.47 times 65 Day Average Volume
ALI traded at 2.47 times 65-day average trading volume, a day after AREIT made a press release that it is boosting dividends and eyeing a 15 Billion Peso property for share swap with ALI. The elevated trading volume could be attributed to investors positioning for an eventual rebound in ALI taking advantage of the weakenedContinue reading “After AREIT deal release, ALI trades 2.47 times 65 Day Average Volume”
ALI liquifying real assets through AREIT, pioneering move to strengthen ALI
ALI is a highly leverage real estate company. As of 30 September 2021, total liabilities are 1.8 times total equity. With the pandemic slowing down real estate sales and rental revenues, leverage real estate developers like ALI must be creative in raising the necessary funds to pay off debts and fund developments. Investment properties ofContinue reading “ALI liquifying real assets through AREIT, pioneering move to strengthen ALI”
DDMPR offering price, a 14% premium over per share equity at fair value
DDMP REIT (DDMPR) like its sponsor and parent company Double Dragon (DD) has been recognizing as income the unrealized gains from changes in fair values of investment property. At the end of the day the unrealized gains from the increase in fair value of investment properties, although “not yet realized,” are added to the capitalContinue reading “DDMPR offering price, a 14% premium over per share equity at fair value”
ALI to survive pandemic through financing activities
ALI burned cash of 12.5 Billion Pesos on operating activities throughout 2020. The cash burned on operations was offset by the proceeds from the AREIT IPO sponsorship. The IPO of AREIT was timely, giving ALI the necessary cash during the year. It looks like that in 2021, ALI may yet again rely on financing activities.Continue reading “ALI to survive pandemic through financing activities”
FLI (Filinvest Land) poised for take-off
On November 23, 2020 trading Filinvest Land, Inc. (FLI) jumped 5.83% to close at 1.09 a share. Volume for FLI on that day reached 73.2 Million shares. That would be 4.7X FLI’s 65-day average volume. That event could be a prelude to the recovery of the share price of FLI. Real estate stocks have beenContinue reading “FLI (Filinvest Land) poised for take-off”
A successful DD REIT will unlock value in DoubleDragon (DD)
In the nine-month period ending September 30, 2020 DoubleDragon Properties Corp. (DD) reported a net income of 5 Billion Pesos. However, of the net income of 5 Billion Pesos, 5.5 Billion Pesos came from revenues consisting of “paper profits” from unrealized gain from changes in fair value of investments properties. Right now, DD’s balance sheetContinue reading “A successful DD REIT will unlock value in DoubleDragon (DD)”
ALI (Ayala Land) survives through financing activities as it burns cash on operations
With all the right pedigree, relationships, and resources it has been a breeze for Ayala Land, Inc. (ALI) to weather the COVID-19 pandemic through financing activities. At the onset of the pandemic, ALI quickly organized the first ever Real Estate Investment Trusts (REIT) in the country to raise funds. The AREIT public offering raised roughlyContinue reading “ALI (Ayala Land) survives through financing activities as it burns cash on operations”
Material slowdown in cash generation had SMPH unable to service debts using its own cash
In the nine-month period ending September 30, 2020, SM Prime Holdings (SMPH) generated cash from operations of 18.7 Billion Pesos down 57% from last year of the same period. Despite the material slowdown in cash flow from operations, SMPH proceeded with its expansion spending 36.4 Billion Pesos to add investment properties and other assets. TheContinue reading “Material slowdown in cash generation had SMPH unable to service debts using its own cash”
ALI (Ayala Land) unloads Ortigas mall to AREIT for 5.1 Billion Pesos, transaction may bode well for ALI holders but not so for AREIT
AREIT just announced that it is buying The 30th from its sponsor, Ayala Land (ALI) for 5.1 Billion Pesos. The 30th is a shopping mall built and managed by Ayala Malls. It is the first Ayala Mall in Ortigas Center as well as in Pasig City. The mall was named “The 30th” as it isContinue reading “ALI (Ayala Land) unloads Ortigas mall to AREIT for 5.1 Billion Pesos, transaction may bode well for ALI holders but not so for AREIT”
SM Prime Holdings should present fund raising initiatives as it faces 43.8 Billion current debts
SM Prime Holdings, Inc. (SMPH) generates cash from operations of 9.4 Billion Pesos during the first half of 2020 down 67% compared to the cash flow generated from operations of the same period a year ago. In the first half of 2019 it generated cash from operations of 28.8 Billion Pesos. Despite the slowdown inContinue reading “SM Prime Holdings should present fund raising initiatives as it faces 43.8 Billion current debts”