DoubleDragon earnings hit P7.4 billion

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CITYMALL Boracay has installed solar panels on its rooftops.

DOUBLEDRAGON Properties Corp. reported its earnings soared 193.57% to P7.42 billion in 2018, backed by higher revenues from its hotels and malls.

In a disclosure on Monday, the listed property developer said revenues surged 117% year on year to P14.34 billion, while recurring revenues rose 132% to P3.03 billion.

Rental revenues surged by 174.89% to P2.5 billion in 2018 versus the previous year’s P909.15 million, as the company opened new CityMalls.

Hotel revenues also increased 34.24% to P533.62 million, as its hotels saw higher occupancy and increased room rates. DoubleDragon operates Hotel101 and Jinjiang Inn Philippines.

“2018 has been a fruitful year for the Company as it has generated P3.03 billion in recurring revenue, more than double the amount of recurring revenues in 2018 versus 2017. More importantly, cashflow from operating income, which excludes fair value gains, reached P1.48 billion in 2018 more than triple where it was in 2017, and should continue to jump further in 2019,“ Hannah Yulo, chief investment officer of DoubleDragon, was quoted saying in a statement.

DoubleDragon is bullish on its prospects for 2019, as it has completed 603,000 square meters of leasable space that will generate more recurring income.

“The Company expects recurring income alone will be more than double the cost to service all its interest costs. With this current completed leasable space alone, the Company expects this to deliver an average of P5.4 billion in an annual rental income,” DoubleDragon said.

Also, the property firm said it has P14.53 billion worth of Hotel101 inventory for pre-selling.

Hotel of Asia, Inc., a unit of DoubleDragon, is focusing on generating international sales for its Hotel101 projects this year. Last December, DoubleDragon’s board of directors gave the go signal for the creation of international wholly owned sales subsidiaries in Singapore, Hong Kong, Middle East, Japan, London, Italy, and the United States.

DoubleDragon said it also has P6.9 billion in inventory and turnover balance from homeowners upon turnover of units at The SkySuites Towers, which started last month. The SkySuites Tower, which was acquired by the company in 2014, is now completed.

To further boost revenues, DoubleDragon is tapping new rental revenue streams through roof space leasing for solar power companies, advertising spaces, and roof deck leasing for common telco towers.

By end of 2020, DoubleDragon said CityMall community malls and CentralHub warehouses should have leased out 100 megawatts (MW) of solar space which is seen to generate P100-million annual rental income.

Currently, the company has a total of 77 buildings, ongoing and completed combined, 10 office buildings, eight hotels, 51 mall, and eight warehouses. — V.M.P.Galang