JAKARTA: About half of the largest property companies, by the size of profits they booked last year, have announced their dividend pay-out plans, while the other half may use the whole of last year's profit to fund business expansion.Stable macroeconomic fundamentals are considered as an opportunity for property companies to expand their business, said Billy Budiman, an analyst at PT Batavia Prosperindo Sekuritas.Now the need for property is getting larger, in line with the growth of population and economy. So, many property companies decided not to pay dividends and would allocate their retained earnings to strengthen capital for expansion, he told Bisnis.He added that land price continue climbing every year and property companies must prepare a big amount of cash for acquisition or land purchases in the following year.According to the nominal amount of dividend per share, PT Metropolitan Kentjana Tbk has allocated the biggest dividend for its shareholders, reaching IDR125 per share.Last year, Metropolitan Kentjana booked profit at IDR262.84 billion, increasing by 11.18% from IDR236.42 billion in the previous year. The company allocated 45.09%, or 118.52 billion, of its profit for dividends.Since the company was listed in Indonesia Stock Exchange on July 10 2009, it has paid dividend for two years in a row; it paid IDR110 per share in 2010.The amount of dividend paid by Metropolitan Kentjana is considered big for a property company, Billy said. The company has excellent fundamental condition, which is seen from its relatively low debt to equity ratio of 7%.The companys profitability is quite good, with PBV [price to book value] at two times and PER [price to earning ratio] 10 times. What is lacking from MKPI [stock code for Metropolitan Kentjana] is that the stock is not frequently traded and active, he explained.Moreover, PT Jaya Real Property Tbk was the second biggest dividend payer with the nominal IDR33 per share, increasing 31% from IDR24 per share last year.Started listing in 1994, the company recorded profit at IDR264.92 billion, increasing 38.19% from IDR191.7 billion in the previous year.The third biggest dividend payer amongst property companies was PT Ciputra Surya Tbk with a nominal dividend IDR13 per share or 30% of last years profit at IDR87.17 billion.No dividend pay-outIn the meantime, amongst those 20 companies, eight have not decided whether to pay-out dividend, and the other three have stated not to. Those three companies are PT Agung Podomoro Land Tbk, PT Duta Pertiwi Tbk, and PT Bakrieland Tbk.Started listing last year, Agung Podomoro have announced not to pay out dividend for the 2010 year. Meanwhile Duta Pertiwi and Bakrieland would use last year's profits as retained earnings for business expansion.Bakrieland has been listed in the stock market for 16 years and has only paid dividend once, in 2010, which amounted to IDR1 per share. (18) (t04/msw)

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