Screengrab from doubledragon.com.ph
Property developer DoubleDragon Properties Corp. chalked up an attributable first quarter net profit of P149.41 million, nearly four times the profit posted in the same period last year, on higher earnings from residential development and leasing businesses.
Total revenues increased by 111 percent year-on-year to P649 million, driven by higher revenues from real estate sales alongside an exponential increase in recurring revenues which now account for 30 percent of total business.
The company said this was in line with its transition to its target of generating 90 percent of total business from recurring revenues by 2020.
Bulk of revenues still came from the company’s interim projects – W.H. Taft Residences, The SkySuites Tower, DD HappyHomes and Dragon8 Mall – Divisoria – with real estate sales showing a 66.2-percent growth year-on-year to around P400 million.
“These interim non-recurring projects continue to fuel the company’s revenue and income until 2018 while at the same time, the provincial community mall and Metro Manila commercial and office projects of the company are building up,” the company said.
To date, the company has 15 operational CityMalls across Luzon, Visayas and Mindanao, which have an average lease-out ratio of 95.2 percent. Ten more CityMalls are scheduled to open within the next three months in SCTEX Southbound, Tarlac City, Dau-Pampanga, Goldenfields-Bacolod City, Dumaguete City, Koronadal City, Calamba City, Sta. Rosa-Nueva Ecija, Passi City and Danao City. More CityMalls are scheduled to open by the last quarter of this year.
The company booked P89.6 million in hotel revenues for quarter from its new subsidiary, Hotel of Asia Inc. (HOA) which serves as its hospitality arm. This unit is the master franchisee of JinJiang Inn which currently has two operational hotels located in Makati and Ortigas respectively. “The stake in HOA will now allow DoubleDragon to benefit from the booming tourism prospects for the Philippines in the years to come as well as fully optimize the use and value of its string of prime properties in various strategic areas of the country,” the company said.
DoubleDragon’s total assets stood at P49.72 billion as of end-March with 25 CityMalls currently under construction and its two office projects in Metro Manila, DD Meridian Park and Jollibee
Tower also in full blast construction.
DoubleDragon Plaza, the first phase of its flagship office and commercial block in the Bay Area, is expected to be operational within the last quarter of this year. The company expects to fully
lease out this complex prior to completion, in turn contributing over P1.2 billion in estimated full year leasing revenues by 2018.
Two more office towers in DD Meridian Park are slated for completion next year which are seen further drive recurring revenues in 2019 alongside Jollibee Tower which is scheduled for turnover by the end of 2018.