Property developer DoubleDragon Properties Corp. (DD) posted a net profit attributable to equity holders of parent firm amounting to P749.35 million in the first nine months, rising by 6 percent year-on-year on higher rental income, real estate sales and sale of leasehold rights.
Bulk of the profit was realized in the third quarter, when attributable net profit amounted to P617.8 million or 5.8 percent year-on-year on higher sales revenues and improved gross profit margins.
Income from rental for the first nine months has increased by over a five-fold to P152 million from only P28.5 million in the same period last year, seen to mark the company’s transition into the recurring revenue model.
“In just over two years since DoubleDragon unveiled its 2020 vision, we are glad to have witnessed how the company has evolved towards its vision. I am personally honored to be part of such a vibrant, young, hardworking and dynamic team. We see the future holding an incredible amount of opportunity for DoubleDragon as the vision enfolds,” said DD chief investment officer Hannah Yulo.
DD aims build up one million square meters of prime leasable space by 2020, bulk of which will come from a chain of 100 community malls around the country branded as “CityMall.” By that time, 90 percent of the business is expected to come from its leasable portfolio.
“The whole DD team remains focused and determined towards its 2020 goals, because we believe that the successful execution of DD’s first stage of growth which is the roll out of its 2020 vision will bring about valuable structural foundation towards DD’s long-term prospects far beyond 2020,” said DD chair Edgar Injap Sia II.
“I have always been a firm believer that whatever we do today needs to always be a strong building block for the long-term. It has always been our desire to build real homegrown brands that over time become household brands that also becomes a source of pride of every Filipino, and companies that creates real long lasting impact to thousands of its employees, consumers, and all its stakeholders,” Sia added.
DD’s total revenues rose by 15.4 percent year-on-year for the nine-month period ended September, mostly coming from interim projects, W.H. Taft Residences, The SkySuites Tower, DD HappyHomes and Dragon8 Mall – Divisoria. Real estate sales increased by 15 percent year-on-year to P956 million.
The company’s total assets rose by 46.9 percent to P40.7B from the end of last year.
The company is currently in the process of securing the necessary approvals for the registration
of P15 billion worth of 10-year fixed rate bonds to be issued in one or several tranches. Once fully
issued, the proceeds are expected to fully complete the funding requirement for all its
projects in relation to its planned portfolio of leasable space by 2020.
DD has also recently concluded its acquisition of 70 percent of Hotel of Asia Inc. (HOA) – operator of the Hotel 101 and Jinjiang Inn brands – which will serve as the company’s hospitality arm. Additional revenues from operating hotels of HOA will start to contribute to DD’s revenues starting the fourth quarter of 2016.