Property developer DoubleDragon Properties Corp. grew its net profit last year by 71.8 percent to P2.53 billion as recurring revenues from community mall and hotel businesses started contributing to overall earnings.
Recurring revenue rose by 3.76 times to P1.31 billion last year, boosted by rental income which grew by 238.4 percent to P909.2 million, DoubleDragon told the Philippine Stock Exchange on Friday. It accounts for 19.8 percent of the company’s total revenue. The goal is to have 90 percent of its revenue from recurring sources by 2020.
Hotel income rose by 404 percent year-on-year to P397.5 million due to the full-year contribution of its hospitality subsidiary, Hotel of Asia Inc. (HOA) which was acquired in October 2016. HOA has 866 operational rooms in its portfolio across its hotel properties with average occupancy rate of 74.8 percent last year.
“I am glad for the progress we have made in the past three years as it has been essential in putting together the solid building blocks that will serve as the bedrock of a company designed and built to stand the test of time,” said DoubleDragon chair Edgar “Injap” Sia II.
“With over 33 hectares of leasable space already built to date, we will very soon start to see substantial contribution from recurring revenue flowing into our financials. By the end of this year, we aim to have at least 60 hectares or 50 percent of our intended 2020 portfolio completed, which should be contributing on a full year basis by 2019. This will replace our temporary non-recurring revenues as we shift into becoming a recurring revenue focused company,” said DoubleDragon chief investment officer Hannah Yulo. —DORIS DUMLAO-ABADILLA