DoubleDragon Properties Corp. reported a 71.8% surge in consolidated net income for 2017 to P2.53 billion from P1.47 billion a year earlier after the company’s recurring revenues grew nearly four times, it told the stock exchange on Friday, March 2.
“I am personally glad for the progress we have made in the past 3 years as it has been essential in putting together the solid building blocks that will serve as the bedrock of a company designed and built to stand the test of time,” said DoubleDragon Chairman Edgar J. Sia II in a statement.
The company recorded recurring revenues of P1.31 billion in 2017, significantly higher than the previous year’s P347.6 million largely because of the growth of its rental revenues. Rental revenues jumped 238.4% to P909.2 million from P268.7 million.
DoubleDragon said rental revenues had accounted for 19.8% of its total revenues “as it continues to shift towards its goal of becoming a 90% recurring revenue company by 2020.”
Hannah M. Yulo, DoubleDragon chief investment officer, said that with 33 hectares of leasable space built to date, the company would “very soon” start to see substantial contribution from recurring revenues.
The company said in just three years, it had completed 332,500 square meters of leasable space, and expects more than 50% of its target leasable portfolio to be online and start to contribute “substantially” by 2019.
The first 25 CityMalls are averaging 95.3% leased out, it said. DoubleDragon expects a total of 50 completed CityMalls by end-2018.
As for its hospitality business, the company said hotel revenues rose 404% year-on-year to P397.5 million as against P78.9 million in 2016 due to the full-year contribution of its hospitality subsidiary, Hotel of Asia Inc.
The company also said its foray into the industrial warehousing business “had seen substantial traction now having secured two of the eight CentralHub sites it intends to initially develop by 2020.”
On Friday, shares in DoubleDragon slipped by 1.7% to P31.80 each. — Victor V. Saulon