Screengrab from doubledragon.com.ph
Property developer DoubleDragon Properties Corp. grew its net profit last year by 126 percent to P1.47 billion as recurring revenues nearly tripled.
This performance allowed the company to beat the P1-billion net profit forecast for 2016 that it committed three years ago when it debuted on the Philippine Stock Exchange.
Total revenues last year rose by 92 percent to P3.71 billion. Of these, recurring revenues amounted to P347.6 million compared to only P116.5 million in the prior year,
DoubleDragon expects that by 2020, about 90 percent of its revenues will be derived from recurring sources driven by the rental revenues to be generated by its planned one million square meter leasable portfolio.
“Last year was our biggest year in terms of fund-raising having successfully placed our first convertible preferred share offering and first retail bond, this has been essential in boosting the completion of our projects. In fact, due to strong tenant take-up at DD Meridian Park in the Bay Area, we are looking to have the first few towers of DoubleDragon Plaza operational within the last quarter of this year when we had originally expected this to be operational on 2018 yet,” said Hannah Yulo, chief investment officer of DoubleDragon.
“We are looking forward for our planned retail bond offering this year which will be the last fundraise we need to complete our one million square meters of leasable space by 2020, to which the strong recurring revenues will enable DoubleDragon to generate P4.8 billion net income by 2020. Even after this final fundraise of P9.7 Billion, which we have already prepared for via a shelf registration of 10-year retail bonds previously approved by the Securities and Exchange Commission, the company’s gross debt-to-equity is expected to remain below 1.7x,” she added.
Total assets grew by 78 percent to end the year at P49.5 billion with the accumulation of landbank, which is now sufficient to provide more than two-thirds of the company’s planned rollout of leasable space by 2020.
Since its initial public offering, DoubleDragon has increased its portfolio of prime commercial properties from only 1.9 hectares to over 75 hectares of prime commercial properties across various cities of the Philippines.
Total equity has likewise grown by 131 percent to end the year at P19.96 billion.
In addition to its Metro Manila office portfolio, DD Meridian Park and Jollibee Tower which are both
under full swing construction, DoubleDragon currently has 15 operational CityMalls across Luzon,
Visayas and Mindanao all averaging over 95 percent lease-out. Over 30 more CityMalls are simultaneously under construction in various prime provincial areas in Luzon, Visayas and Mindanao.
The company expects another 10 CityMalls to open to the public this third quarter of 2017 and end the year with at least 30 operational CityMalls.
“I am very thankful to all our believers and strong supporters who chose to understand our direction and can see through our vision, and also especially to the hundreds of people that form our organization today. As we continue to move forward, we look ahead to an even stronger DoubleDragon as we continue to break barriers and be relentless in the pursuit of achieving our clear vision through sheer determination, resourcefulness and passionate execution. I am personally excited to see the vision of DoubleDragon through as it slowly takes shape and becomes clearer to many more as we go forward.” said DoubleDragon chair Edgar Sia II.