PNB Holdings Corp., a wholly-owned subsidiary of Philippine National Bank, on Wednesday disclosed plans to redevelop two prime properties in Pasay City and Makati City to maximize earnings.
Newly-appointed PNB Holdings president Karlu Tan Say said in a statement during the annual stockholders’ meeting the company would improve the efficiency of the 10-hectare PNB Financial Center in Pasay and the 1,882-square-meter PNB Makati Center in the Ayala central business district by increasing its gross leasable area.
“We are excited on planning for the redevelopment of our properties in Makati and Pasay as we see a very huge growth potential in these areas,” said Tan-Say, who is concurrently the chief operating officer of Eton Properties Philippines, the real estate arm of the Lucio Tan Group. PNB is also controlled by Tan.
“We continuously and meticulously find ways to further enhance these developments to better serve the market in the new normal,” said Tan-Say.
The Pasay property has GLA of 9,500 sq. m. while the Makati property has a GLA of 3,500 sq. m.
PNB Holdings serves as a holding company that invests, develops, and sells all kinds of assets, majority of which are prime real estate properties. It plans to focus on maximizing earnings from prime assets, which already generates a stable recurring cash inflow while taking advantage of future development opportunities.
The board of directors of PNB approved in April the declaration of shares of PNB Holdings as property dividends.
The property dividend declaration is a part of PNB’s move to recognize and monetize the unrealized value of three major properties, including PNB Financial Center in Pasay, PNB Makati Center in Ayala CBD and the prime property at the corner of Buendia Ave. and Paseo De Roxas also in Makati.
Meanwhile, the move will also qualify PNB Holdings to list at the Philippine Stock Exchange through the process called listing by way of introduction. The company, however, has yet to finalize its planned listing with the PSE.
PNB Holdings expects a significant increase in net income this year from P200 million it posted in 2020.
“While we are cautious of the economic environment, we also remain optimistic that the ongoing vaccine rollout and the health and safety protocols in place will prompt the imminent reopening of the local economy,” Tan-Say said.
PNB, its parent company, reported a net income of P1.8 billion in the first quarter, up by 34 percent from a year ago, on improvements in net service fees and commission income, reduced operating expenses, and significantly lower provisions for credit losses.
PNB’s consolidated resources reached P1.1 trillion as of end-March. The bank’s capital adequacy ratio of 14.77 percent and common equity tier 1 ratio of 14.11 percent were above the minimum regulatory requirement of 10 percent.