DOUBLEDRAGON Properties Corp.’s earnings surged 66% in the third quarter of 2017, primarily from the expansion of its community malls around the country.
In a statement issued Thursday, the property developer said its consolidated net income for the July to September period stood at P1.02 billion, versus P616.8 million it realized in the same period in 2016. Third quarter revenues nearly doubled to P2.45 billion from P1.28 billion a year ago.
DoubleDragon attributed the company’s robust growth to the rising number of CityMalls in provincial areas, citing the shift from traditional to modern retail in third-tier cities while e-commerce gains steam in urban areas.
“We expect the inflection point of these transitions to be felt within the next three years, just in time for the completion of our goal of having a strong network of 100 CityMalls in the provincial areas of the Philippines. We are glad that CityMall has already started to gain significant traction in the countryside, which we aim to dominate as we grow organically,” DoubleDragon Chairman Edgar J. Sia II was quoted as saying in a statement.
Mr. Sia said the company is now helping modernize the provincial retail environment with the expansion of CityMalls across the country.
“The business model of CityMall is positioned to remain relevant beyond the age of digitalization because we focus on delivering only basic necessities, and generally, the supermarket, cinema, services and food tenants combined occupy more than 70% of a typical CityMall. CityMalls are also conveniently located in provincial city centers within close reach of its market,” Mr. Sia said.
For the first nine months of 2017, DoubleDragon’s earnings soared 83.7% to P1.4 billion, after doubling revenues to P4.08 billion.
Rental income from CityMalls’ operations rose 194% to P448 million during the January to September period, from P152.2 million posted in the same period last year. The company continues to add to its mall leasing portfolio with the opening of its 25th CityMall located in Koronadal City, South Cotabato, last Nov. 8.
Operations from CityMall contributed to the company’s recurring revenues of P764 million for the first three quarters of 2017, now accounting for 18.7% of the company’s total revenues from just 7.7% in the same period a year ago.
Its industrial segment through newly incorporated unit Central Hub Industrial Centers, Inc. will also allow DoubleDragon to service the consumer market’s needs for warehouse, commissary, cold storage, light manufacturing facility, or logistics distribution center.
DoubleDragon, co-chaired by Jollibee Foods Corp. founder Tony Tan Caktiong, is further expanding its leasable portfolio through the hotel segment with brands Hotel 101 and JinJiang Inn.
Meanwhile, construction for its office projects in Metro Manila — the first phase of DD Meridian Park in Pasay City and Jollibee Tower in Ortigas Center — is set to be completed by year-end and 2018, respectively.
“Coming from zero leasable space in 2013, DoubleDragon expects over 300,000 square meters of leasable space to be onstream by end of this year 2017. All geared towards its 2020 goal of 1.2 million square meters of prime and appreciating leasable space portfolio,” Mr. Sia said.
Shares in DoubleDragon were up 55 centavos or 1.46% to P38.30 each at the Philippine Stock Exchange on Thursday. — Arra B. Francia