Property developer DoubleDragon Properties Corp. grew its first quarter net profit by 349.4 percent year-on-year to P744.56 million as the company unlocked more recurring revenues out of its buildup of commercial property assets.
Three-month recurring revenues rose by 173.7 percent year-on-year to P531.38 million for the first three months as rental income jumped 291.9 percent to P409.71 million. Recurring revenues now account for 29 percent of total revenues as DoubleDragon fleshes out its planned shift toward becoming a 90-percent recurring revenue company by 2020, the company recently disclosed to the Philippine Stock Exchange.
“This quarter is quite significant for DoubleDragon as it is the first time we have exceeded P500 million in recurring revenue in just three months time, marking the beginning of the realization of the projects we have been building. The company is now starting to harvest the capital investments we have deployed in the last three years,” DoubleDragon chair and chief executive officer Edgar Sia II said.
“The cashflow that our current projects are now generating will be reinvested into further growing our leasable portfolio as originally intended,” he added.
The four office towers of DoubleDragon Plaza—comprising the first phase of DD Meridian Park which marks the company’s debut into the office property space—are now 98.2-percent leased out and are expected to substantially contribute to consolidated rental revenues starting this year.
The majority of the company’s leasable portfolio comes from retail-oriented developments with 29 community malls now operational nationwide. The goal is to complete 50 malls this year. All operational CityMalls had an average leasing occupancy rate of 95 percent as of end-March.