DoubleDragon profit surges 234%

Property developer DoubleDragon Properties Corp.’s net profit in the first six months surged by 234.2 percent year-on-year to P1.26 billion with the expansion in recurring earnings from its growing leasable property portfolio.

Recurring revenues accounted for 39 percent of business in the first semester, growing its share from 29 percent in the same period last year.

These recurring revenues jumped by 216.5 percent year-on-year to P883.29 million for the second quarter alone as rental revenues soared by 357.6 percent year-on-year to P749.95 million. Consolidated net income in the second quarter increased by 143.7 percent year-on-year to P513.5 million.

For the first time, the value of DoubleDragon’s investment properties breached the P50-billion mark, now amounting to P51.2 billion as of end-June. As such, recurring revenues in the first six months hit P1.41 billion, almost triple the amount last year while rental income ended at P1.16 billion, more than quadruple that in the same period last year.

“Our financials are now clearly harvesting the hard work we have put into intricately building a valuable leasing portfolio. These are solid revenue contributions that are recurring in nature and will continue to grow organically as we increase our rental yields,” DoubleDragon chief investment officer Hannah Yulo said.

DoubleDragon’s consolidated assets ended the period at P69.74 billion while total equity stood at P23.22 billion.

“The reason why we are so fixated in hitting our 1.2 million square meter leasable target by 2020 is because the math is simple. With 1.2 million square meters of leasable space, yielding say an average of P750 per square meter per month by that time, this should give the company total annual recurring revenues of P10.8 billion. This rental income practically translates to about 90 percent Ebitda (earnings before interest, taxes, depreciation and amortization) margin because in addition to rent, developers collect CUSA/maintenance fees from tenants, which cover operating expenses of each property,” DoubleDragon chair Edgar “Injap” Sia II said. CUSA, or common use service area refers to the regular fees collected to maintain shared amenities such as the restroom, lobby and other common areas. —DORIS DUMLAO-ABADILLA