By Arra B. Francia, Reporter
EARNINGS of DoubleDragon Properties Corp. soared 349.4% in the first quarter of 2018, riding on the back of higher recurring revenues.
In a statement issued Tuesday, the listed property developer said consolidated net income more than tripled to P744.56 million in the first three months of the year, from P165.67 million it realized in the same period a year ago.
The profit growth came amid a 182% increase in top-line to P1.83 billion. Of this, nearly a third or P531.38 million were from recurring revenues, a 173.7% increase year on year. This is in line with DoubleDragon’s goal to have recurring revenues account for 90% by 2020.
“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,” DoubleDragon Chairman Edgar J. Sia II was quoted as saying in a statement.
The company generated revenues from its 29 CityMalls, which recorded an average occupancy rate of 95% by the end of March. The company looks to have a total of 50 CityMalls under its network by the end of the year.
The firm also expects DoubleDragon Plaza, an office complex in the Bay Area constituting the first phase of the DD Meridian Park, to contribute to higher recurring revenues for the year. Since its opening earlier this month, the DoubleDragon Plaza is already 98.2% leased out.
Mr. Sia noted cash flows from current projects will further be invested for the expansion of its leasable portfolio.
DoubleDragon has earlier disclosed its target of having 1.2 million square meters (sq.m.) under its leasable portfolio by 2020. To achieve this, the company should have 100 CityMalls covering 700,000 sq.m., office projects covering 300,000 sq.m., hospitality developments spanning 100,000 sq.m., and industrial projects with another 100,000 sq.m. by the end of 2020.
In response to higher interest rate environment, Mr. Sia noted the company has already anticipated this to be a risk to their business early on.
“We have mitigated this risk by favoring fixed rate funding for all of our fund-raises…We have been very deliberate in all of our fund-raising activities to match tenors with the return profile of our projects. We have ensured that we have no key maturities until 2021, by then, the 1.2 million square meters of leasable space we are building is expected to fully contribute,” Mr. Sia said.
Shares in DoubleDragon gained 25 centavos or 0.8% to close at P31.35 each on Tuesday.