Guocoland (F17.SG) unfazed by dilutive rights issue, Singapore’s latest measures to cool property market, according to Dow Jones.

Shares +2.3% at $2.19 as investors focus on developer’s return to profitability in June quarter, higher dividend payout. Fiscal 4Q10 net profit at $52.0 million vs $73.1 million loss year earlier on higher margins, gain from asset sale, absence of revaluation loss on investment properties.

Developer paying $0.08/share dividend vs $0.05/share year earlier, translating to 3.7% yield. JPMorgan, which has Overweight call with $2.45 target, says sales outlook in Singapore, China has improved, while $532.5 million rights issue long overdue.

295.8 million new shares, or 33.3% of existing share capital, will be issued at $1.80 each on basis of 1 rights share for every 3 ordinary shares held. Take-up risk minimal as controlling shareholder Guoco Group has pledged to underwrite exercise. Orderbook quotes suggest $2.28 intraday high unlikely to give way soon.