DOUBLEDRAGON Properties Corp. on Tuesday said its second quarter consolidated net income more than doubled to P513.5 million, boosted by rental revenues from its community malls and offices.
In a statement, DoubleDragon said its consolidated net income jumped 144% to P513.5 million during the April to June period, from P210.7 million a year ago.
For the January to June period, the listed property developer reported its consolidated net income surged 234% to P1.26 billion.
Recurring revenues increased by 216% to P883.29 million for the three months ending June 30, fueled by the 358% surge in rental revenues to P749.95 million.
During the first half, consolidated revenues went up 123% to P3.63 billion, while recurring revenues rose 199% to P1.41 billion. Rental income also more than quadrupled to P1.16 billion.
“Recurring revenues now accounts for 39% for the first half of 2018 vs. only 29.0% during the same period last year as the Company becomes closer to its goal of becoming a 90% recurring revenue company by 2020,” DoubleDragon said.
DoubleDragon Chief Investment Officer Hannah M. Yulo said this is the first time the value of its investment properties exceeded the P50 billion mark, now at P51.2 billion as of end-June.
“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,” she was quoted as saying.
DoubleDragon targets to have a leasable portfolio of 1.2 million square meters (sq.m.) by 2020. This will include 700,000 sq.m. from 100 CityMalls, 300,000 sq.m. from Metro Manila office projects, and 100,000 sq.m. from 5,000 hotel rooms under the Hotel 101 and JinJiang Inn Philippines brands.
“The reason why we are so fixated in hitting our 1.2 million sq.m. leasable target by 2020 is because the math is simple. With 1.2 million sq.m. 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,” DoubleDragon Chairman Edgar “Injap” J. Sia II was quoted as saying in the same statement.
“This rental income practically translates to about 90% EBITDA margin because in addition to rent, developers collect maintenance fees from tenants which covers operating expenses of each property,” he added. — CRAG