DoubleDragon nets P1.07B

MANILA, Philippines — Property developer DoubleDragon Properties Corp. chalked up P1.07 billion in first quarter net profit, rising by 43.3 percent from the same period last year, as rental revenues gained critical mass.

Three-month recurring revenues, including those from its rental portfolio, went up by 44.9 percent year-on-year to P769.99 million.

“For the past five years, the whole DoubleDragon team has worked tirelessly towards this phase of the plan — from raising the funds needed and acquiring the right properties at the right price. The team has properly executed the construction of the buildings at the right price and within the earliest timeframe. These elements were vital to get to this important stage of leasing out the properties and securing the company’s return of investment,” DoubleDragon chair Edgar Sia II said in a disclosure to the Philippine Stock Exchange on Wednesday.

Recurring revenues now accounted for 31.5 percent of total revenues in line with DoubleDragon’s goal of becoming a 90-percent recurring revenue company by 2020.

Rental revenues grew by 53.1 percent to P627.21 million during the first three months of the year. The first five office towers of DD Meridian Park are now 100-percent leased out and are expected to make substantial contribution to consolidated rental revenues starting this year.

The first phase of logistics arm CentralHub is also 100-percent leased out while the community mall portfolio is averaging a lease-out rate of 93 percent.

On the other hand, the hotel segment posted an average occupancy rate of 83.4 percent for the first quarter across all five operating hotels. The 518-room Hotel101-Manila was the best performing hotel property with an average 87.4 percent occupancy for the first quarter.

DoubleDragon now has a portfolio of 603,000 square meters of completed leasable space.  These have started to contribute revenues, but earnings will be fully reflected by the second half of 2019.

The company expects to further grow its leasable portfolio to 800,000 square meters across its various segments by the end of this year. (Editor: Julie Espinosa)