MANILA, Philippines - SM Development Corp.'s board has approved the increase in the company's authorized capital stock to cover a stock dividend declaration.

In a disclosure to the Philippine Stock Exchange, SMDC, the residential property arm of Sy-led SM Investments Corp., said its capital stock would be hiked to P12. 4 billion, consisting of 12.4 billion shares, from the earlier P8 billion.

SMDC has also approved a P1.1 billion stock dividend equivalent to 15% of the its outstanding shares.

SMDC earlier reported a P3 billion net income for 2010, up 62% from P1.9 billion in 2009. The firm is eyeing a net income of P4 billion this year.

It currently has 14 residential projects in its portfolio.

Shares in SMDC closed down 0.4% to P7.06 apiece.