Property firms post double-digit income growth

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LISTED property companies showed double-digit earnings growth in the first nine months of September, benefiting from their expansion strategies.

DoubleDragon Properties, Corp., Cebu Landmasters, Inc. (CLI) and Century Properties Group, Inc. (CPG) reported in separate disclosures to the stock exchange that their net income grew by 10%, 27%, and 23%, respectively.

DoubleDragon’s consolidated earnings went up 10% to P1.54 billion in the nine-month period, on the back of a 15.5% increase in revenues to P4.72 billion.

The revenue increase comes amid the company’s shift toward expanding its recurring income portfolio, which now accounts for 43.1% of total revenues versus a 19% contribution in the same period a year ago. It aims to further increase recurring revenue up to 90% by 2020.

DoubleDragon’s rental income jumped by 270% to P1.66 billion, thanks to higher mall occupancy which stood at 96% and office buildings being fully leased out.

As of October, DoubleDragon had 36 community malls, keeping it on track to have 50 malls by end-2018.

Hotel revenues from its Hotel 101 and Jinjiang Inn branches also gained 19.6% to P377.8 million.

No third quarter figures were immediately available for DoubleDragon.

Cebu Landmasters, Inc. (CLI) delivered a 29% increase in earnings for the three months ending September to P395.52 million, following revenues of P1.07 billion, 12% higher year-on-year.

With this, the Cebu-based property developer boosted nine-month earnings by 27%to P1.22 billion. This can be attributed to the strong sales of residential properties, complemented by the progress of projects being constructed in Cebu and Cagayan de Oro.

Revenues from January to September surged by 33% to P3.7 billion, which CLI Chairman and Chief Executive Officer Jose Soberano II noted still does not include P2 billion worth of investments financed by its initial public offering last year.

“Once these projects start contributing to our revenues, we expect CLI’s performance to achieve new levels… We will sustain growth by aggressively addressing the needs of underserved markets,” Mr. Soberano said in a statement.

For Antonio-led CPG, net income climbed to P660.96 million in the first nine months, against P538.74 million in the same period a year ago. At the same time, P7.5 billion worth of revenues were realized, 45% higher year-on-year.

CPG registered 84% higher earnings to P171.11 million in the third quarter alone, while revenues picked up 55% to P2.81 billion.

The company attributed the profit growth to higher sales of condominium units, accompanied by price increases implemented in the third quarter. Its in-city developments such Azure South Projects Boracay and Bahamas projects drove sales for the period, while projects in the affordable also contributed P752.05 million.

Property companies who earlier disclosed their nine-month performance also showed double-digit growth. Ayala Land, Inc. grew its net income by 17% to P20.78 billion, after revenues jumped 21% to P119.7 billion.

Sy-led SM Prime Holdings, Inc. also generated higher earnings to P26.2 billion, 10% higher year-on-year following 10% revenue growth to P307.4 billion.

Robinsons Land Corp. delivered P6.55 billion worth of earnings, 43% higher from the same period a year ago. The Gokongwei-led firm saw a 31% uptick in revenues to P21.8 billion as well. — Arra B. Francia